If the combined leverage and operating leverage figures of a company are 2.5 and 1.25 respectively, find the financial leverage and P/V ratio, given that the equity dividend per share is ₹2, interest payable per year is
CS Executive · Financial and Strategic Management · PYQS · December 2023
If the combined leverage and operating leverage figures of a company are 2.5 and 1.25 respectively, find the financial leverage and P/V ratio, given that the equity dividend per share is ₹2, interest payable per year is ₹1 lakh, total fixed cost ₹0.5 lakh and sales ₹10 lakhs.
Answer & Explanation:
Correct Answer: Option (C)
Official answer key: (C).
Topics: Financial Management
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