The capital structure of Abi Ltd consist of the below securities : 10% Preference share capital Rs.

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The capital structure of Abi Ltd consist of the below securities :

10% Preference share capital Rs. 1,00,00,000

Equity share capital (Rs. 1O/share) Rs. 1,00,00,000

The amount of operating profit is Rs. 60,00,000.

The company is 'in the' 50% tax bracket.

Calculate the financial leverage of the company. What would be the new financial leverage if the operating profit increase to Rs. 90,00,000

Related Book For answer-question

Income Tax Fundamentals 2013

ISBN: 9781285586618

31st Edition

Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill

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Posted Date: May 09, 2023 08:39 AM

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The capital structure of Abi Ltd consist of the below securities : 10% Preference share capital Rs.

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To calculate the financial leverage of the company we need to first calculate its EBIT Earnings ... View the full answer

Income Tax Fundamentals 2013

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