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  3. 12th Class
  4. Business Studies

12th Class Business Studies Sample Paper Business Studies Sample Paper-6

  • question_answer
    The capital structure of a company is given as: Equity =Rs. 25,00,000 Debt =Rs. 15,00,000 Find out the financial leverage for the above company.

    Answer:

    Calculation of financial leverage of the company as follows: Financial Leverage\[=\frac{Debt}{Equity}=\frac{15,00,000}{25,00,000}=0.6\] Note Financial leverage can also be computed by using the following formula: \[\frac{Debt}{Debt+Equity}\]


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