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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 PQR Limited is considering the installation of a new project costing Rs The units of production will be units. Selling price per units is Rs Variable cost per unit is RsExpected annual fixed cost other than interest is Rs Corporate tax rate is per cent. The company wants to arrange the funds through issuing equity shures of Rs each and per cent debentures of Rs and preferences shares of Rs You are required to: i Calculate the operating leverage, financial leverage, and combined leverage.
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