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    Tute-8 Exercises - Leverages

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    vivek patel
    The document provides information about XYZ Ltd's operating leverage, financial leverage, and break-even points under different situations and financial plans. It asks the reader to calculate the operating leverage, financial leverage, and break-even point for each situation and plan, and to determine which combinations give the highest and lowest values of overall leverage. The document also provides information about three financing plans being considered by Excel Ltd and asks the reader to determine the financial breakeven point and EPS range for indifference between the plans.

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    Tute-8 Exercises - Leverages

    Uploaded by

    vivek patel
    78 views1 page
    The document provides information about XYZ Ltd's operating leverage, financial leverage, and break-even points under different situations and financial plans. It asks the reader to calculate the operating leverage, financial leverage, and break-even point for each situation and plan, and to determine which combinations give the highest and lowest values of overall leverage. The document also provides information about three financing plans being considered by Excel Ltd and asks the reader to determine the financial breakeven point and EPS range for indifference between the plans.

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    Tute8 Leverages

    Original Title

    Tute8 Leverages

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    © Attribution Non-Commercial (BY-NC)

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    The document provides information about XYZ Ltd's operating leverage, financial leverage, and break-even points under different situations and financial plans. It asks the reader to calculate the operating leverage, financial leverage, and break-even point for each situation and plan, and to determine which combinations give the highest and lowest values of overall leverage. The document also provides information about three financing plans being considered by Excel Ltd and asks the reader to determine the financial breakeven point and EPS range for indifference between the plans.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    78 views1 page

    Tute-8 Exercises - Leverages

    Uploaded by

    vivek patel
    The document provides information about XYZ Ltd's operating leverage, financial leverage, and break-even points under different situations and financial plans. It asks the reader to calculate the operating leverage, financial leverage, and break-even point for each situation and plan, and to determine which combinations give the highest and lowest values of overall leverage. The document also provides information about three financing plans being considered by Excel Ltd and asks the reader to determine the financial breakeven point and EPS range for indifference between the plans.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    of 1

    Tute-8 Exercises - Leverages Q1 Calculate the operating and financial leverage for XYZ Ltd using the following

    information: (Rs.la hs! "#$% 11&' "#% (&' )i*ed Cost +'' Calculate operating leverage and financial leverage under situations ,- # and C and financial plans 1- &- and ( respectivel. from the following information relating to the operation and capital structure of X- Y- Z Ltd. ,lso find out the com/inations of operating and financial leverage- which give the highest value and the least value. ,lso calculate the /rea 0even point in each case. $nstalled capacit. (units! ,ctual production and sales (units! 2elling price per unit (Rs! 4aria/le cost per unit (Rs! )i*ed Costs (Rs!: 2ituation , 2ituation # 2ituation C Capital 2tructure: "6uit. 7e/t Cost of de/t (for all plans! Q.( 1-&'' 1'' 13 1' 1-''' &-''' (-''' )inancial 5lan 1 & 3''' +3'' 3''' &3'' 1& per cent ( &3'' +3''

    Q.&

    "*cel Ltd. is considering three financing plans. %he e. information is as follows: a! %otal funds to /e raised- Rs. &-''-'''. /! )inancing 5lans 5lans , # C c! d! e! f! "6uit. 1'' 8 3'8 3'8 7e/t 999 3'8 999 5reference 999 999 3'8

    Cost of de/t 1 8: cost of preference shares 1 8 %a* rate- (38 "6uit. shares of the face value of Rs. 1' each will /e issued at a premium of Rs. 1' per share "*pected "#$%- R2. 1'-'''

    7etermine for each plan: i! "52 and financial /rea 0even point ii! $ndicate if an. of the plans dominate- and compute the "#$% range among the plans for indifference.

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