Strategic Finance

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Issue:

Miscellaneous

 

Written by:

Virginia F

 

Date added:

December 1, 2015

 

Level:

University

 

Grade:

B

 

No of pages / words:

2 / 404

 

Was viewed:

6995 times

 

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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...
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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...
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