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The following financial data have been furnished by A Ltd. And B Ltd. for the year ended 31st March 2018: Particulars Operating Leverage Financial
The following financial data have been furnished by A Ltd. And B Ltd. for the year ended 31st March 2018: Particulars Operating Leverage Financial Leverage Interest charges per annum Corporate tax rate Variable cost as % of sales A Ltd. 3:1 2:1 Rs.1,200,000 40% 60% B Ltd. 4:1 3:1 Rs.1,000,000 40% 50% Required: Prepare Income statements of the two companies. Also comment on the financial position and structure of the two companies.
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Answer Q1 An Ltd Financial Leverage EBIT EBT 2 EBITEBIT Interest 2 EBITEBIT 1200000 2EBIT 1200000 EB...
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Cost Accounting Foundations and Evolutions
Authors: Michael R. Kinney, Cecily A. Raiborn
8th Edition
9781439044612, 1439044619, 978-1111626822
