THE CAPITAL STRUCTURE OF ABC PVT. LTD IS AS FOLLOWS: EQUITY SHARE CAPITAL (EACHSHAREOFRS.10) = RS.16, 00,000DEBENTURES WITH A COUPON RATE OF 10% = RS. 10, 00,000RESERVES AND SURPLUS = RS.15, 00,000REVENUE FROM THE BUSINESS ACTIVITIES FOR THE COMPANY IS RS. 2.00 CRORES. ITS VARIABLE COST IS 10% OF THE REVENUE, FIXED OPERATING COST IS RS. 60 LAKHS AND THE COMPANY PAYS INCOME TAX AT A RATE OF 25%. (10MARKS)CALCULATE FINANCIAL LEVERAGE, OPERATING LEVERAGE AND COMBINED LEVERAGE FOR THE COMPANY.

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THE CAPITAL STRUCTURE OF ABC PVT. LTD IS AS FOLLOWS: EQUITY SHARE
CAPITAL (EACHSHAREOFRS.10) = RS.16, 00,000DEBENTURES WITH A COUPON
RATE OF 10% = RS. 10, 00,000RESERVES AND SURPLUS = RS.15,
00,000REVENUE FROM THE BUSINESS ACTIVITIES FOR THE COMPANY IS RS. 2.00
CRORES. ITS VARIABLE COST IS 10% OF THE REVENUE, FIXED OPERATING COST
IS RS. 60 LAKHS AND THE COMPANY PAYS INCOME TAX AT A RATE OF 25%.
(10MARKS)CALCULATE FINANCIAL LEVERAGE, OPERATING LEVERAGE AND COMBINED
LEVERAGE FOR THE COMPANY.

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