Question: Please help me asap text answer please Problem No. 8] A firm has sales of Rs. 75,00,000, variable cost of Rs. 42,00,000 and fixed cost
Please help me asap text answer please
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Problem No. 8] A firm has sales of Rs. 75,00,000, variable cost of Rs. 42,00,000 and fixed cost of Rs. 6,00,000. It has a debt of Rs. 45,00,000 at 9% and equity of Rs. 55,00,000. (1) What is the firm's ROI? (it) Does it have favourable financial leverage? (ii) If the firm belongs to an industry whose asset turnover is 3, does it have a high or low asset leverage? (iv) What arc the operating, financial and combined levcrages of the firm? (v) At what level of sales the EBT of the firm will be equal to zero
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