Sunday

April 20, 2014

April 20, 2014

Posted by **selvi** on Monday, June 28, 2010 at 9:56am.

Rs.20 lakhs (shares of Rs.100 per value) and Rs.20 lakhs of 10% debentures. The unit sales

increased by 20% from 2,00,000 units to 2,40,000 units, the selling price is Rs.10 per unit,

variable cost amounts to Rs.6 per unit and fixed expenses amount to Rs.2,00,000. The

income tax rate is assumed to be 50%.

You are required to calculate the following:

a. The percentage increase in earnings per share.

b. The degree of financial leverage at 2,00,000 units and 2,40,000 units

c. The degree of operating leverage at 2,00,000 units and 2,40,000 units

**Related Questions**

Capital Investment and Financing Decisions. - 1)Find the present value of Rs. 2...

accountancy - 2. The ledger accounts of M Ltd. show the following balances: Rs. ...

Accounts - From the following Balance Sheets of Sriramco, prepare (a) Statement ...

maths- - Rana bought 500 shares of HCL at a rate that yielded him 20 % return on...

financial accounting and reporting - january 01,2007 Mr.A started a business ...

maths-urgently needed - Rana bought 500 shares of HCL at a rate that yielded him...

maths-urgently needed - Rana bought 500 shares of HCL at a rate that yielded him...

college - an investor is looking for 4 year investment.the share of skylark ...

Accounts - The following details relates to the two machines X and Y: Machine X ...

Business finance - Question No 1: Sumi Inc. has policy of paying a Rs. 9 per ...