what is mean by leverage ratio?
Answer / hari enaganti
leverage ratio nothing but debt equity ratio.
=debt/equity
(or)
=external equity/internal equity
(or)
=long term debt/long term fund
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A company produces and sells 12500 units of Commodity X at Rs 50 each. The variable cost of the production is 20 % of selling price. Fixed cost being Rs 100000 per annum. Calculate the PV ratio and BEP if. The selling price is reduced by 5 %. Fixed cost is increased by 2 lacs