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
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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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