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Strategic Finance
Essay specific features
Written by:
Virginia F
Date added:
December 1, 2015
Level:
University
Grade:
B
No of pages / words:
2 / 404
Was viewed:
6995 times
Rating of current essay:
Essay content:
2.5 million and its present borrowing are as follows:
14% term loans amounting to 4,000,000
Working Capital Borrowing @16% amounting to 3,300,000
Short term loans @15% amounting to 1,500,000
The sales of the company are growing and to support the extended demand the company proposes to obtain an additional bank loan of Rs...
displayed 300 characters
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2.5 million. EBIT is expected to increase by 20%. Calculate interest coverage ratio before and after the borrowing.
4.
Company P Company Q
Sales 500 1000
VC 200 300
Contri. Margin 300 700
FC 150 400
EBIT 150 300
Interest 50 100
EBT 100 200
Calculate DOL, DFL, DCL
Assignment Question
A B C
Financial Leverage 3 4 2
Interest 200 300 1000
Operating Leverage 4 5 3
VC (% to sales) 66...
displayed 300 characters
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