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
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
Did you check suggested answers?Yes we can solve this question in another way too ie. by taking operating leverage or FL as a base.But don't you think answer should be the same. But in this case answer is different .that's why I am asking
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