Question
EBIT = ₹5,00,000; Interest = ₹50,000; Preference
dividend = ₹25,000; Tax = 30%. Compute Financial Leverage.Solution
FL = EBIT / EBT = ₹5,00,000 / (₹5,00,000 – ₹50,000) ≈ 1.11
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(NOTE : Operations should be performed ...
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