Total assets of Alpha Company are 3,00,000. The company's total assets turnover ratio is 3, its fixed operating cost is 1,50,000 and its variable operating cost ratio is 50%. The income-tax rate is 50%. It also has long term debts of 1,20,000 on which interest @ 10% is payable. Operating, Financial & Combined Leverages of the company are - Oa. 1.05; 1.42; 1.05625 respectively O b. 1.05; 1.42; 1.05625 respectively O c. 1.05; 1.42; 1.05625 respectively Od1,5; 1.042; 1.563 respectively
Total assets of Alpha Company are 3,00,000. The company's total assets turnover ratio is 3, its fixed operating cost is 1,50,000 and its variable operating cost ratio is 50%. The income-tax rate is 50%. It also has long term debts of 1,20,000 on which interest @ 10% is payable. Operating, Financial & Combined Leverages of the company are - Oa. 1.05; 1.42; 1.05625 respectively O b. 1.05; 1.42; 1.05625 respectively O c. 1.05; 1.42; 1.05625 respectively Od1,5; 1.042; 1.563 respectively
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Total assets of Alpha Company are 3,00,000. The company's total assets turnover ratio is 3, its fixed operating cost is 1,50,000 and its variable operating cost ratio is 50%. The income-tax rate is 50%. It also has long term debts of 1,20,000 on which interest @ 10% is payable. Operating, Financial & Combined Leverages of the company are -
Oa. 1.05; 1.42; 1.05625
respectively
O b. 1.05; 1.42; 1.05625
respectively
O c. 1.05; 1.42; 1.05625 respectively
Od1,5; 1.042; 1.563 respectively
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