SlideShare a Scribd company logo
1.A firm has a sales of 2000000/-at variable cost
1400000/-and fixed cost of 400000/-
Debentures as per the capital structure 1000000/-
Interest to be paid-10%
Calculate various leverages
2. Calculate financial leverage,operating leverage and
combined leverage.
Sales-100000 units(2 Rs per unit)
Variable cost-0.70 paise per unit
Fixed cost-100,000
Interest charges -Rs 4000
3.A firm has a sales of Rs 5000000,var cost-2000000,
fixed cost-1000000,tax rate-50%,10% debentures-
1000000
Calculate operating leverage,financial leverage and
combined leverage.

More Related Content

What's hot

Financial management 1
Financial management 1Financial management 1
Financial management 1
HarshVerma196
 
inter-fm-1-9.pdf
inter-fm-1-9.pdfinter-fm-1-9.pdf
inter-fm-1-9.pdf
hitishaagrawal
 
leverage chapter problem solution
leverage chapter problem solutionleverage chapter problem solution
leverage chapter problem solution
mianmohsinmumtazshb
 
Chap004
Chap004Chap004
Conotesmsn478141345715141
Conotesmsn478141345715141Conotesmsn478141345715141
Conotesmsn478141345715141
Damodar Patankar
 
Objective questions and answers of financial management
Objective questions and answers of financial managementObjective questions and answers of financial management
Objective questions and answers of financial management
Vineet Saini
 
Cbproblems solutions
Cbproblems solutionsCbproblems solutions
Cbproblems solutions
mely3178
 
SBS - Lean Accounting Principles
SBS - Lean Accounting PrinciplesSBS - Lean Accounting Principles
SBS - Lean Accounting Principles
Chris Cummins
 
Assignment 5
Assignment 5Assignment 5
Assignment 5
Kinshook Chaturvedi
 
Chapter 1. accounting overview3
Chapter 1. accounting overview3Chapter 1. accounting overview3
Chapter 1. accounting overview3
LyLy Tran
 
Making capital investment decisions
Making capital investment decisionsMaking capital investment decisions
Making capital investment decisions
Rahmatia Azzindani
 
Ch 6 accruals and prepayment
Ch 6 accruals and prepaymentCh 6 accruals and prepayment
Ch 6 accruals and prepayment
Amaie Idarus
 
Leverages Problems
Leverages ProblemsLeverages Problems
Leverages Problems
Dayasagar S
 
Valuation of goodwill
Valuation of goodwill Valuation of goodwill
Valuation of goodwill
savina1319
 
9706 y10 sp_4
9706 y10 sp_49706 y10 sp_4
9706 y10 sp_4
Jeetendra Kumar
 
Ch02a beechy ism
Ch02a beechy ismCh02a beechy ism
Ch02a beechy ism
Malihaazure
 
Final accounts
Final accountsFinal accounts
Final accounts
abhi23agrawal
 
IAS 27 Consolidated Financial Statements
IAS 27 Consolidated Financial StatementsIAS 27 Consolidated Financial Statements
IAS 27 Consolidated Financial Statements
Maliha Jahan
 
Consolidated statement of financial position
Consolidated statement of financial positionConsolidated statement of financial position
Consolidated statement of financial position
Shiela Mae Castrodes
 
Accounting Equation
Accounting EquationAccounting Equation
Accounting Equation
Jashim Uddin
 

What's hot (20)

Financial management 1
Financial management 1Financial management 1
Financial management 1
 
inter-fm-1-9.pdf
inter-fm-1-9.pdfinter-fm-1-9.pdf
inter-fm-1-9.pdf
 
leverage chapter problem solution
leverage chapter problem solutionleverage chapter problem solution
leverage chapter problem solution
 
Chap004
Chap004Chap004
Chap004
 
Conotesmsn478141345715141
Conotesmsn478141345715141Conotesmsn478141345715141
Conotesmsn478141345715141
 
Objective questions and answers of financial management
Objective questions and answers of financial managementObjective questions and answers of financial management
Objective questions and answers of financial management
 
Cbproblems solutions
Cbproblems solutionsCbproblems solutions
Cbproblems solutions
 
SBS - Lean Accounting Principles
SBS - Lean Accounting PrinciplesSBS - Lean Accounting Principles
SBS - Lean Accounting Principles
 
Assignment 5
Assignment 5Assignment 5
Assignment 5
 
Chapter 1. accounting overview3
Chapter 1. accounting overview3Chapter 1. accounting overview3
Chapter 1. accounting overview3
 
Making capital investment decisions
Making capital investment decisionsMaking capital investment decisions
Making capital investment decisions
 
Ch 6 accruals and prepayment
Ch 6 accruals and prepaymentCh 6 accruals and prepayment
Ch 6 accruals and prepayment
 
Leverages Problems
Leverages ProblemsLeverages Problems
Leverages Problems
 
Valuation of goodwill
Valuation of goodwill Valuation of goodwill
Valuation of goodwill
 
9706 y10 sp_4
9706 y10 sp_49706 y10 sp_4
9706 y10 sp_4
 
Ch02a beechy ism
Ch02a beechy ismCh02a beechy ism
Ch02a beechy ism
 
Final accounts
Final accountsFinal accounts
Final accounts
 
IAS 27 Consolidated Financial Statements
IAS 27 Consolidated Financial StatementsIAS 27 Consolidated Financial Statements
IAS 27 Consolidated Financial Statements
 
Consolidated statement of financial position
Consolidated statement of financial positionConsolidated statement of financial position
Consolidated statement of financial position
 
Accounting Equation
Accounting EquationAccounting Equation
Accounting Equation
 

Recently uploaded

Digital Marketing with a Focus on Sustainability
Digital Marketing with a Focus on SustainabilityDigital Marketing with a Focus on Sustainability
Digital Marketing with a Focus on Sustainability
sssourabhsharma
 
Dpboss Matka Guessing Satta Matta Matka Kalyan Chart Satta Matka
Dpboss Matka Guessing Satta Matta Matka Kalyan Chart Satta MatkaDpboss Matka Guessing Satta Matta Matka Kalyan Chart Satta Matka
Dpboss Matka Guessing Satta Matta Matka Kalyan Chart Satta Matka
➒➌➎➏➑➐➋➑➐➐Dpboss Matka Guessing Satta Matka Kalyan Chart Indian Matka
 
Authentically Social by Corey Perlman - EO Puerto Rico
Authentically Social by Corey Perlman - EO Puerto RicoAuthentically Social by Corey Perlman - EO Puerto Rico
Authentically Social by Corey Perlman - EO Puerto Rico
Corey Perlman, Social Media Speaker and Consultant
 
2022 Vintage Roman Numerals Men Rings
2022 Vintage Roman  Numerals  Men  Rings2022 Vintage Roman  Numerals  Men  Rings
2022 Vintage Roman Numerals Men Rings
aragme
 
Lundin Gold Corporate Presentation - June 2024
Lundin Gold Corporate Presentation - June 2024Lundin Gold Corporate Presentation - June 2024
Lundin Gold Corporate Presentation - June 2024
Adnet Communications
 
How are Lilac French Bulldogs Beauty Charming the World and Capturing Hearts....
How are Lilac French Bulldogs Beauty Charming the World and Capturing Hearts....How are Lilac French Bulldogs Beauty Charming the World and Capturing Hearts....
How are Lilac French Bulldogs Beauty Charming the World and Capturing Hearts....
Lacey Max
 
Maksym Vyshnivetskyi: PMO KPIs (UA) (#12)
Maksym Vyshnivetskyi: PMO KPIs (UA) (#12)Maksym Vyshnivetskyi: PMO KPIs (UA) (#12)
Maksym Vyshnivetskyi: PMO KPIs (UA) (#12)
Lviv Startup Club
 
Top mailing list providers in the USA.pptx
Top mailing list providers in the USA.pptxTop mailing list providers in the USA.pptx
Top mailing list providers in the USA.pptx
JeremyPeirce1
 
GKohler - Retail Scavenger Hunt Presentation
GKohler - Retail Scavenger Hunt PresentationGKohler - Retail Scavenger Hunt Presentation
GKohler - Retail Scavenger Hunt Presentation
GraceKohler1
 
Easily Verify Compliance and Security with Binance KYC
Easily Verify Compliance and Security with Binance KYCEasily Verify Compliance and Security with Binance KYC
Easily Verify Compliance and Security with Binance KYC
Any kyc Account
 
Organizational Change Leadership Agile Tour Geneve 2024
Organizational Change Leadership Agile Tour Geneve 2024Organizational Change Leadership Agile Tour Geneve 2024
Organizational Change Leadership Agile Tour Geneve 2024
Kirill Klimov
 
Part 2 Deep Dive: Navigating the 2024 Slowdown
Part 2 Deep Dive: Navigating the 2024 SlowdownPart 2 Deep Dive: Navigating the 2024 Slowdown
Part 2 Deep Dive: Navigating the 2024 Slowdown
jeffkluth1
 
TIMES BPO: Business Plan For Startup Industry
TIMES BPO: Business Plan For Startup IndustryTIMES BPO: Business Plan For Startup Industry
TIMES BPO: Business Plan For Startup Industry
timesbpobusiness
 
DearbornMusic-KatherineJasperFullSailUni
DearbornMusic-KatherineJasperFullSailUniDearbornMusic-KatherineJasperFullSailUni
DearbornMusic-KatherineJasperFullSailUni
katiejasper96
 
Brian Fitzsimmons on the Business Strategy and Content Flywheel of Barstool S...
Brian Fitzsimmons on the Business Strategy and Content Flywheel of Barstool S...Brian Fitzsimmons on the Business Strategy and Content Flywheel of Barstool S...
Brian Fitzsimmons on the Business Strategy and Content Flywheel of Barstool S...
Neil Horowitz
 
Call8328958814 satta matka Kalyan result satta guessing
Call8328958814 satta matka Kalyan result satta guessingCall8328958814 satta matka Kalyan result satta guessing
Call8328958814 satta matka Kalyan result satta guessing
➑➌➋➑➒➎➑➑➊➍
 
Anny Serafina Love - Letter of Recommendation by Kellen Harkins, MS.
Anny Serafina Love - Letter of Recommendation by Kellen Harkins, MS.Anny Serafina Love - Letter of Recommendation by Kellen Harkins, MS.
Anny Serafina Love - Letter of Recommendation by Kellen Harkins, MS.
AnnySerafinaLove
 
Zodiac Signs and Food Preferences_ What Your Sign Says About Your Taste
Zodiac Signs and Food Preferences_ What Your Sign Says About Your TasteZodiac Signs and Food Preferences_ What Your Sign Says About Your Taste
Zodiac Signs and Food Preferences_ What Your Sign Says About Your Taste
my Pandit
 
The 10 Most Influential Leaders Guiding Corporate Evolution, 2024.pdf
The 10 Most Influential Leaders Guiding Corporate Evolution, 2024.pdfThe 10 Most Influential Leaders Guiding Corporate Evolution, 2024.pdf
The 10 Most Influential Leaders Guiding Corporate Evolution, 2024.pdf
thesiliconleaders
 
Creative Web Design Company in Singapore
Creative Web Design Company in SingaporeCreative Web Design Company in Singapore
Creative Web Design Company in Singapore
techboxsqauremedia
 

Recently uploaded (20)

Digital Marketing with a Focus on Sustainability
Digital Marketing with a Focus on SustainabilityDigital Marketing with a Focus on Sustainability
Digital Marketing with a Focus on Sustainability
 
Dpboss Matka Guessing Satta Matta Matka Kalyan Chart Satta Matka
Dpboss Matka Guessing Satta Matta Matka Kalyan Chart Satta MatkaDpboss Matka Guessing Satta Matta Matka Kalyan Chart Satta Matka
Dpboss Matka Guessing Satta Matta Matka Kalyan Chart Satta Matka
 
Authentically Social by Corey Perlman - EO Puerto Rico
Authentically Social by Corey Perlman - EO Puerto RicoAuthentically Social by Corey Perlman - EO Puerto Rico
Authentically Social by Corey Perlman - EO Puerto Rico
 
2022 Vintage Roman Numerals Men Rings
2022 Vintage Roman  Numerals  Men  Rings2022 Vintage Roman  Numerals  Men  Rings
2022 Vintage Roman Numerals Men Rings
 
Lundin Gold Corporate Presentation - June 2024
Lundin Gold Corporate Presentation - June 2024Lundin Gold Corporate Presentation - June 2024
Lundin Gold Corporate Presentation - June 2024
 
How are Lilac French Bulldogs Beauty Charming the World and Capturing Hearts....
How are Lilac French Bulldogs Beauty Charming the World and Capturing Hearts....How are Lilac French Bulldogs Beauty Charming the World and Capturing Hearts....
How are Lilac French Bulldogs Beauty Charming the World and Capturing Hearts....
 
Maksym Vyshnivetskyi: PMO KPIs (UA) (#12)
Maksym Vyshnivetskyi: PMO KPIs (UA) (#12)Maksym Vyshnivetskyi: PMO KPIs (UA) (#12)
Maksym Vyshnivetskyi: PMO KPIs (UA) (#12)
 
Top mailing list providers in the USA.pptx
Top mailing list providers in the USA.pptxTop mailing list providers in the USA.pptx
Top mailing list providers in the USA.pptx
 
GKohler - Retail Scavenger Hunt Presentation
GKohler - Retail Scavenger Hunt PresentationGKohler - Retail Scavenger Hunt Presentation
GKohler - Retail Scavenger Hunt Presentation
 
Easily Verify Compliance and Security with Binance KYC
Easily Verify Compliance and Security with Binance KYCEasily Verify Compliance and Security with Binance KYC
Easily Verify Compliance and Security with Binance KYC
 
Organizational Change Leadership Agile Tour Geneve 2024
Organizational Change Leadership Agile Tour Geneve 2024Organizational Change Leadership Agile Tour Geneve 2024
Organizational Change Leadership Agile Tour Geneve 2024
 
Part 2 Deep Dive: Navigating the 2024 Slowdown
Part 2 Deep Dive: Navigating the 2024 SlowdownPart 2 Deep Dive: Navigating the 2024 Slowdown
Part 2 Deep Dive: Navigating the 2024 Slowdown
 
TIMES BPO: Business Plan For Startup Industry
TIMES BPO: Business Plan For Startup IndustryTIMES BPO: Business Plan For Startup Industry
TIMES BPO: Business Plan For Startup Industry
 
DearbornMusic-KatherineJasperFullSailUni
DearbornMusic-KatherineJasperFullSailUniDearbornMusic-KatherineJasperFullSailUni
DearbornMusic-KatherineJasperFullSailUni
 
Brian Fitzsimmons on the Business Strategy and Content Flywheel of Barstool S...
Brian Fitzsimmons on the Business Strategy and Content Flywheel of Barstool S...Brian Fitzsimmons on the Business Strategy and Content Flywheel of Barstool S...
Brian Fitzsimmons on the Business Strategy and Content Flywheel of Barstool S...
 
Call8328958814 satta matka Kalyan result satta guessing
Call8328958814 satta matka Kalyan result satta guessingCall8328958814 satta matka Kalyan result satta guessing
Call8328958814 satta matka Kalyan result satta guessing
 
Anny Serafina Love - Letter of Recommendation by Kellen Harkins, MS.
Anny Serafina Love - Letter of Recommendation by Kellen Harkins, MS.Anny Serafina Love - Letter of Recommendation by Kellen Harkins, MS.
Anny Serafina Love - Letter of Recommendation by Kellen Harkins, MS.
 
Zodiac Signs and Food Preferences_ What Your Sign Says About Your Taste
Zodiac Signs and Food Preferences_ What Your Sign Says About Your TasteZodiac Signs and Food Preferences_ What Your Sign Says About Your Taste
Zodiac Signs and Food Preferences_ What Your Sign Says About Your Taste
 
The 10 Most Influential Leaders Guiding Corporate Evolution, 2024.pdf
The 10 Most Influential Leaders Guiding Corporate Evolution, 2024.pdfThe 10 Most Influential Leaders Guiding Corporate Evolution, 2024.pdf
The 10 Most Influential Leaders Guiding Corporate Evolution, 2024.pdf
 
Creative Web Design Company in Singapore
Creative Web Design Company in SingaporeCreative Web Design Company in Singapore
Creative Web Design Company in Singapore
 

Leverage problems

  • 1. 1.A firm has a sales of 2000000/-at variable cost 1400000/-and fixed cost of 400000/- Debentures as per the capital structure 1000000/- Interest to be paid-10% Calculate various leverages 2. Calculate financial leverage,operating leverage and combined leverage. Sales-100000 units(2 Rs per unit) Variable cost-0.70 paise per unit Fixed cost-100,000 Interest charges -Rs 4000 3.A firm has a sales of Rs 5000000,var cost-2000000, fixed cost-1000000,tax rate-50%,10% debentures- 1000000 Calculate operating leverage,financial leverage and combined leverage.