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    taufique4u2002 Posts: 2, Reputation: 1
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    #1

    Apr 17, 2010, 09:21 AM
    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
    taufique4u2002's Avatar
    taufique4u2002 Posts: 2, Reputation: 1
    New Member
    		  
    #2

    Apr 17, 2010, 09:24 AM
    :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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