The two years data of 2019 & 2020 for Deepak Inc., operating in the textile industry...
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The two years data of 2019 & 2020 for Deepak Inc., operating in the textile industry is reported below. Analyse and comment on the following- a) Estimate the operating and financial risk of the company that is exposed to and analyse the results b) If the EPS for the next is expected to be increased by 30%, what is expected to be its impact on operating profit and sales of the firm? Sales VC FC Interest Tax rate No of shares (No) Rs (Million) 60% of sales 2019 15000 1000 3000 35% Rs (Million) 60% of sales 200 2020 7000 1000 3000 35% 200 The two years data of 2019 & 2020 for Deepak Inc., operating in the textile industry is reported below. Analyse and comment on the following- a) Estimate the operating and financial risk of the company that is exposed to and analyse the results b) If the EPS for the next is expected to be increased by 30%, what is expected to be its impact on operating profit and sales of the firm? Sales VC FC Interest Tax rate No of shares (No) Rs (Million) 60% of sales 2019 15000 1000 3000 35% Rs (Million) 60% of sales 200 2020 7000 1000 3000 35% 200
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a To estimate the operating risk of Deepak Inc we can calculate the operating leverage and financial ... View the full answer
Related Book For
Financial Reporting Financial Statement Analysis and Valuation a strategic perspective
ISBN: 978-1285190907
8th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Posted Date:
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