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Please help me asap text answer please Problem No. 6] Calculate operating leverage and financial leverage under situations A, B and C and financial Plans
Please help me asap text answer please
Problem No. 6] Calculate operating leverage and financial leverage under situations A, B and C and financial Plans I, II, and III respectively from the following information relating to the operating and capital structure of XYZ Co. Also find out the combinations of operating and financial leverages which give the highest value and the least value. How are these calculations useful to the financial manager in a company? Installed capacity 1,200 units Actual production & sales 800 units Selling price per unit Rs. 15 Variable cost per unit Rs. 10 Fixed Cost: Situation A Rs. 1,000 Situation B Rs. 2,000 Situation C Rs. 3,000 Financial Plan I Financial Plan II Financial Plan III Capital Structure: Equity Rs. 5,000 Rs. 7,500 Rs. 2,500 Debt Rs. 5,000 Rs. 2,500 Rs. 7,500 Cost of debt 12% 1296 12%Step by Step Solution
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