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Calculate the financial leverage from the following data under situation 1 and 2 and financial Plan A and B Installed capacity = 4000 units Actual
Calculate the financial leverage from the following data under situation 1 and 2 and financial Plan A and B Installed capacity = 4000 units Actual Production and sales =75% of the capacity Selling Price = OMR 30 per unit Variable cost= OMR 15 per unit Fixed cost: Under Situation 1 is OMR 15000 Under Situation 2 is OMR 20000 Capital Structure Particulars Plan A Plan B Equity OMR 10000 OMR 15000 OMR 500000 OMR 800000 Debt (0.005) Interest rate)
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