CA Inter FMSM Notes by Om Trivedi ❤️
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IIMC Alumnus, Faculty of FM-SM, AFM & Case Studies, ICAI Visiting Faculty Member at LVC, NIRC & WIRC of ICAI, External Sub. Expert at the BOS of ICAI. Author, Corporate speaker, and Educationist.
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🥇FM MCQ 36 of the Day (Jan/May 2025):👍 Lower financial leverage is related to the use of additional_________
Anonymous Quiz
28%
Fixed costs
9%
Variable costs
50%
Debt financing
13%
Common equity financing
🥇FM MCQ 37 of the Day (Jan/May 2025):👍The operating leverage indicates the impact of changes in sales on -
Anonymous Quiz
57%
Operating income
19%
Operating cost
14%
Operating profit after tax
10%
Operating sales
🥇FM MCQ 39 of the Day (Jan/May 2025):👍Which of the following is correct formula to calculate Financial Leverage(FL) when capital structure consists of preference shares and equity shares?
Anonymous Quiz
16%
FL= EBT/(EBIT-[D_p/((1-T) )])
30%
FL= EBIT/(EBT+[D_p/((1-T) )])
49%
FL= EBIT/(EBT-[D_p/((1-T) )])
5%
FL= EBT/(EBT-[D_p/((1+T) )])
🥇FM MCQ 40 of the Day (Jan/May 2025):👍Where a company has large amount of fixed interest charges, the financial leverage will be
Anonymous Quiz
73%
High
26%
Low
1%
Negative
1%
Unreliable
🥇FM MCQ 41 of the Day (Jan/May 2025):👍Which of the following formulas represents the correct calculation of the degree of financial leverage?
Anonymous Quiz
3%
[NI+T +I [NI-I-PD/(1-T)]
48%
EBIT/[EBIT -1-PD/(1 -T)]
17%
EBIT/[NI-I-PD/(1-T)]
32%
All of the above are correct methods to calculate the degree of financial leverage (DFL)
🥇FM MCQ 42 of the Day (Jan/May 2025):👍The maximum amount of debt (and other fixed-charge financing) that a firm can adequately service is referred to as the __________.
Anonymous Quiz
43%
Debt capacity
25%
Debi-service burden
10%
Adequacy capacity
22%
Fixed-charge burden
🥇FM MCQ 43 of the Day (Jan/May 2025):👍High financial leverage is not good as it indicates the large content of -
Anonymous Quiz
18%
Fixed cost
75%
Fixed interest charges
6%
Variable cost charges
2%
Contribution
🥇FM MCQ 44 of the Day (Jan/May 2025):👍The cash required during a specific period to meet interest expenses and principal payments is referred to as the:
Anonymous Quiz
28%
Debt capacity
39%
Debt-service burden
20%
Adequacy capacity
13%
Fixed-charge burden
🥇FM MCQ 45 of the Day (Jan/May 2025):👍Earnings to equity shareholders (EPS) will fluctuate violently if —
Anonymous Quiz
69%
Financial leverage is very high
17%
Operating leverage is very high
9%
Working capital leverage is very high
5%
Operating leverage is very low
Dear Friends, Ask your Queries on my WhatsApp number 9958300572. Please message as per the attached schedule. Thanks - Om Trivedi 🥰
🚀 FM Marathon by Om Trivedi | Part 1 | CA Inter | A Compilation of 6 Most Important Chapters. 🚀
00:05:48 - EBIT-EPS-IP Analysis
02:18:27 - Leverages
04:08:10 - Cost of Capital
06:14:50 - Capital Structure
08:30:41 - Capital Budgeting
Working Capital Management Link
: https://youtu.be/lrf4rsQLQ_Y
Merry Christmas! 🎄 Wishing you a day filled with love, laughter, and cherished moments with your loved ones. May your Christmas be joyful and your New Year bright with new opportunities and 🎯 success in coming exams! 🌟🎁