Student
187 Points
Joined January 2012
i got cash flow tallied but presentation wast not good, and i got Rs.700 as answer for rowan incentive plan and its effective hourly rate means 700/5 or 700/6 ? i did 700/5 and got Rs.140/-
can someone tell me if leverages problem i did is right or wrong ?
Sales 42 lakhs
Contribution : 25.55% on 42 lakhs = 10,73,100
Less: fixed cost 348,000
EBIT 725,100
Less : Interest 203500
EBT = 521,600
Less tax @ 35% 182560
EAT = 339040 - amount available to equity share holders
EPS 339040/250000 = 1.35616
operating leverage = EBIT/Sales = 725100/4200000 = 0.17times
is the above right ?