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Q . 2 PQR Limited is considering the installation of a new project costing Rs , 8 0 , 0 0 , 0 0 0

Q.2 PQR Limited is considering the installation of a new project costing Rs,80,00,000. The units of production will be 150000 units. Selling price per units is Rs.60. Variable cost per unit is Rs.36.Expected annual fixed cost other than interest is Rs.10,00,000. Corporate tax rate is 30 per cent. The company wants to arrange the funds through issuing 4,00,000 equity shures of Rs.10 each and 12 per cent debentures of Rs.30,00,000 and 10A6 preferences shares of Rs.10,00,000. You are required to: (i) Calculate the operating leverage, financial leverage, and combined leverage.
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