Question
A company reports an EBIT (Earnings Before Interest and
Tax) of ₹10,00,000. It incurs interest charges of ₹2,00,000. The company also pays a Preference Dividend of ₹1,00,000 and an Equity Dividend of ₹7,00,000. On the basis of this information, calculate the Financial Leverage.Solution
Financial Leverage = EBIT / EBT = 10,00,000 / 8,00,000 = 1.25.
More Financial Statement Analysis Questions
- What approximate value will come in place of the question mark (?) in the following question? (Note: You are not expected to calculate the exact value.)
18.22 × 11.99 + 154.15 = ?
(20.23% of 780.31) + ? + (29.87% of 89.87) = 283
2875.45 + ? – 2762.19 = 2145.72 – 1956.63
13.99% of 399.99 ÷ 28.17 = ? ÷ 25.15
Approximate the value of (19.98 × 5.02) ÷ 0.99
(8.013 – 25.04) = ? + 11.98% of 2399.98
(14.98% of 319.99) - 7.998 = √?
20.22 × 11.99 + 140.15 = ?
- What approximate value will come in place of the question mark (?) in the following question? (Note: You are not expected to calculate the exact value.)
