Capital Structure of A Ltd. comprises of the following: Equity Share Capital : ₹25 Lakh 10% Debentures : ₹10 Lakh If EBIT is ₹6 lakh, degree of Financial Leverage is:

CS Executive · Financial and Strategic Management · PYQS · June 2022
Capital Structure of A Ltd. comprises of the following: Equity Share Capital : ₹25 Lakh 10% Debentures : ₹10 Lakh If EBIT is ₹6 lakh, degree of Financial Leverage is:
(A) 1.3
(B) 1.2
(C) 2
(D) 1.5

Answer & Explanation:

Correct Answer: Option (B)

Official answer key: (B).

Topics: Financial Management

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