Question

A firm has sales of Rs. 50,00,000, variable costs of Rs. 30,00,000, and fixed costs of Rs. 10,00,000. It has debt of Rs. 20,00,000 at 10% interest. What is the Degree of Financial Leverage (DF

  • L at EBIT level?
A 1.25
B 1.50
C 2.00
D 2.50
E 3.00
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