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FMSM 6TH CH

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Marks: 12

Q.   1
  1. If degree of combined leverageis 3 and margin of safety is 0.50, then degree of financial leverageis:

     

Q.   2

When sales are at breakevenpoint, the degree of operatingleverage will be:

Q.   3

Firm with high operating leveragewill have:

Q.   4

When EBIT is much higher than Financial break-even point, then degree of financial leverage will be slightly:

Q.   5

If degree of financial leverageis 3 and there is 15% increasein Earning per share (EPS), then EBIT will be:

Q.   6

If Margin of Safety is 0.25 and there is 8% increasein output, then EBIT will be:

Q.   7

Financial leverage may be definedas:

Q.   8

Operating leverage is a function of which of the following factors?

Q.   9

From the following information, calculate combined leverage: 

Sales                             ` of 20,00,000

Variable Cost                40%

Fixed Cost                     ` 10,00,000

Borrowings                   ` 10,00,000 @ 8% p.a.

 

Q.   10

Degree of combined leverage is the fraction of:

Q.   11

Which of the following indicates business risk?

Q.   12

Which of the following is correct?

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