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-   -   He other financial data for the company are given below: (10 Marks) (https://www.askmehelpdesk.com/showthread.php?t=465218)

  • Apr 17, 2010, 09:21 AM
    taufique4u2002
    He other financial data for the company are given below: (10 Marks)
    2. Volga is a large manufacturing company in the private sector. In 2007 the company had a gross sale of Rs.980.2 crore. The other financial data for the company are given below: (10 Marks)
    Items Rs. In crore
    Net worth 152.31
    Borrowing 165.47
    EBIT 43.17
    Interest 34.39
    Fixed cost (excluding interest) 118.23

    You are required to calculate:

    a. Debt equity ratio
    b. Operating leverage
    c. Financial leverage
    d. Combined leverage. Interpret your results and comment on the Volga’s debt policy
  • Apr 17, 2010, 09:24 AM
    taufique4u2002
    :confused:
    Quote:

    Originally Posted by taufique4u2002 View Post
    2. Volga is a large manufacturing company in the private sector. In 2007 the company had a gross sale of Rs.980.2 crore. The other financial data for the company are given below: (10 Marks)
    Items Rs. In crore
    Net worth 152.31
    Borrowing 165.47
    EBIT 43.17
    Interest 34.39
    Fixed cost (excluding interest) 118.23

    You are required to calculate:

    a. Debt equity ratio
    b. Operating leverage
    c. Financial leverage
    d. Combined leverage. Interpret your results and comment on the Volga’s debt policy


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