The details of XYZ Ltd. are as follows: Variable Cost Ratio = 60%Operating Leverage = 5Combined Leverage = 15EBIT = 30,000Tax Rate = 30% Calculate…

CA Intermediate · Financial Management and Strategic Management · MTP · May 2025
The details of XYZ Ltd. are as follows: Variable Cost Ratio = 60%Operating Leverage = 5Combined Leverage = 15EBIT = 30,000Tax Rate = 30% Calculate the amount of interest.
(A) ₹ 40,000
(B) ₹ 30,000
(C) ₹ 20,000
(D) ₹ 24,000

Suggested Answer and Working Notes:

Correct Answer: Option (C)

₹ 20,000

Topics: Part-A: Financial Management

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