Based on the following financials of a company, what will be its combined leverage ? Turnover: ₹50 Lakh Variable Cost: ₹30 Lakh Fixed Cost: ₹10 Lakh 10% Debentures : ₹20 Lakh Tax rate : 30%

CS Executive · Financial and Strategic Management · PYQS · June 2022
Based on the following financials of a company, what will be its combined leverage ? Turnover: ₹50 Lakh Variable Cost: ₹30 Lakh Fixed Cost: ₹10 Lakh 10% Debentures : ₹20 Lakh Tax rate : 30%
(A) 2 times
(B) 1.5 times
(C) 1.75 times
(D) 2.5 times

Answer & Explanation:

Correct Answer: Option (D)

Official answer key: (D).

Topics: Financial Management

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