From the following information, calculate combined leverage: Sales | ₹20,00,000 Variable Cost | 40% Fixed Cost | ₹10,00,000 Borrowings | ₹10,00,000 @ 8% p.a.

CS Executive · Financial and Strategic Management · PYQS · June 2021
From the following information, calculate combined leverage: Sales | ₹20,00,000 Variable Cost | 40% Fixed Cost | ₹10,00,000 Borrowings | ₹10,00,000 @ 8% p.a.
(A) 7
(B) 0.9
(C) 9
(D) 10

Answer & Explanation:

Correct Answer: Option (D)

Official answer key: (D).

Topics: Capital Structure

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