Question 5 A company had the following balance sheet as on 31t March, 2021: Liebilities in Crores Assets 7.50 Building in Crores Equity Share Capital (75 lakhs Shares of 10 each) Reserves and Surplus...

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Question 5<br>A company had the following balance sheet as on 31t March, 2021:<br>Liebilities<br>in Crores Assets<br>7.50 Building<br>in Crores<br>Equity Share Capital (75 lakhs Shares of<br>10 each)<br>Reserves and Surplus<br>12.50<br>1.50 Machinery<br>15.00 Current Assets<br>6.00 Stock<br>6.25<br>15% Debentures<br>Current Liabilities<br>3.00<br>Debtors<br>3.25<br>Bank Balance<br>5.00<br>30.00<br>30.00<br>The additional information given is as under:<br>Fixed cost per annum (excluding interest)<br>76 crores<br>Variable operating cost ratio<br>60%<br>Total assets turnover ratio<br>2.5<br>Income-tax rate<br>40%<br>Calculate the following and comment:<br>(1) Earnings per share<br>(i) Operating Leverage<br>(ii) Financial Leverage<br>(iv) Combined Leverage<br>

Extracted text: Question 5 A company had the following balance sheet as on 31t March, 2021: Liebilities in Crores Assets 7.50 Building in Crores Equity Share Capital (75 lakhs Shares of 10 each) Reserves and Surplus 12.50 1.50 Machinery 15.00 Current Assets 6.00 Stock 6.25 15% Debentures Current Liabilities 3.00 Debtors 3.25 Bank Balance 5.00 30.00 30.00 The additional information given is as under: Fixed cost per annum (excluding interest) 76 crores Variable operating cost ratio 60% Total assets turnover ratio 2.5 Income-tax rate 40% Calculate the following and comment: (1) Earnings per share (i) Operating Leverage (ii) Financial Leverage (iv) Combined Leverage

Jun 04, 2022

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Question 5 A company had the following balance sheet as on 31t March, 2021: Liebilities in Crores Assets 7.50 Building in Crores Equity Share Capital (75 lakhs Shares of 10 each) Reserves and Surplus...

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