If marginal contribution is Rs 60,000, fixed operating cost is Rs 20,000 and interest payment is Rs 10,000, find out DFCL. Will DFCL change if marginal contribution moves up to Rs 80,000?
If a Rs 100 preference share carries 7% dividend rate, the tax rate is 30% and if ROI is 9%, compute the degree of financial leverage. Would it make a favourable financial leverage?
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