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FMSM -6 FINANCING DECSIONS - LEVERAGES

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Marks: 12

Q.   1

 If DOL is 1.24 and DFL is 1.99, DCL would be:

Q.   2

 Financial Leverage is calculated as:

 

Q.   3

Which of the following is correct?

Q.   4

 Which of the following indicates business risk?

Q.   5

 Degree of combined leverage is the fraction of:

Q.   6

From the following information, calculate combined leverage:

Sales ₹ 20,00,000

Variable Cost 40%

Fixed Cost ₹ 10,00,000 Borrowings ₹ 10,00,000 @ 8% p.a.

Q.   7

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

Q.   8

 Financial leverage may be defined as:

Q.   9

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

 

 

 

Q.   10

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

 

 

 

Q.   11

 Firm with high operating leverage will have:

 

 

Q.   12

 When sales is at breakeven point, the degree of operating leverage will be:

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