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    Question

    Based on the following parameters—CC limit ₹10 lakh,

    stock margin 25%, book debt margin 40%, stock value ₹4 lakh, and book debt ₹10 lakh—what is the maximum Drawing Power?
    A ₹10.5 lakh Correct Answer Incorrect Answer
    B ₹9 lakh Correct Answer Incorrect Answer
    C ₹8 lakh Correct Answer Incorrect Answer
    D ₹6.5 lakh Correct Answer Incorrect Answer
    E ₹7 lakh Correct Answer Incorrect Answer

    Solution

    DP = (4 × 75%) + (10 × 60%) = ₹3L + ₹6L = ₹9L.

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