A firm provides the following information : Sold 2,00,000 units @ ₹30 per unit; Variable cost ₹15 per unit, fixed cost ₹10,00,000 and debt of ₹10,00,000 at 10% rate of interest. Calculate the degree of Financial leverage
CS Executive · Financial and Strategic Management · PYQS · December 2020
A firm provides the following information : Sold 2,00,000 units @ ₹30 per unit; Variable cost ₹15 per unit, fixed cost ₹10,00,000 and debt of ₹10,00,000 at 10% rate of interest. Calculate the degree of Financial leverage.
Answer & Explanation:
Correct Answer: Option (C)
Official answer key: (C).
Topics: Financial Management
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