Ad Free CAclubindia and Daily Updates on your Mobile. Subscribe Now!

Fm question

shilpi (student) (780 Points)

09 February 2018

Operating leverage =2:1 Financial leverage=1.25:1

Fixed cost excluding intt= 3.4 lakh, sales-50 lakh,. interest -242000 ,Equity share capital-34 lakh ,Tax 30%

Calculate PV ratio and Eps

Reply
Follow
Share

3 Replies

gopal (future smart stupid) (293 Points)
Replied 09 February 2018

sales 5000000

v/c 3450000

con 1550000

f/c 340000

ebit 1210000

int 242000

ebt 968000

t 290400

pat 677600

1.25=ebit/(ebit-i)

1.25(ebit-242000)=ebit

ebit= 1210000

am I right? its long back I used to solve this...☺☺

Upgrade to CAclubindia Pro. Subscribe Now!

shilpi (student) (780 Points)
Replied 09 February 2018

Not right , different from suggested answers of Nov 2017 issued by ICAI.

shilpi (student) (780 Points)
Replied 09 February 2018

My calculations is also same with you. In suggested answers operating leverage taken as a base to find out contribution first .But in our calculations financial leverage taken. But Answer should be the same. I think there is some mistake in that question.