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    Corporate Finance Leverage

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    1t4
    This document contains the final project on corporate finance for three companies - Kohat Cement Pakistan Limited, Thatta Cement Company Limited, and Fauji Cement Company Limited. It includes calculations of the degree of operating leverage, degree of financial leverage, degree of total leverage, and weighted average cost of capital for each company. Key financial data like EBIT, sales, interest, and debt are used in the calculations.

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    Corporate Finance Leverage

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    1t4
    29 views17 pages
    This document contains the final project on corporate finance for three companies - Kohat Cement Pakistan Limited, Thatta Cement Company Limited, and Fauji Cement Company Limited. It includes calculations of the degree of operating leverage, degree of financial leverage, degree of total leverage, and weighted average cost of capital for each company. Key financial data like EBIT, sales, interest, and debt are used in the calculations.

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    corporate finance leverage

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    This document contains the final project on corporate finance for three companies - Kohat Cement Pakistan Limited, Thatta Cement Company Limited, and Fauji Cement Company Limited. It includes calculations of the degree of operating leverage, degree of financial leverage, degree of total leverage, and weighted average cost of capital for each company. Key financial data like EBIT, sales, interest, and debt are used in the calculations.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    29 views17 pages

    Corporate Finance Leverage

    Uploaded by

    1t4
    This document contains the final project on corporate finance for three companies - Kohat Cement Pakistan Limited, Thatta Cement Company Limited, and Fauji Cement Company Limited. It includes calculations of the degree of operating leverage, degree of financial leverage, degree of total leverage, and weighted average cost of capital for each company. Key financial data like EBIT, sales, interest, and debt are used in the calculations.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
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    Download as docx, pdf, or txt
    of 17

    Final project of corporate finance

    PRESENTED TO:
    PROF. MUZAFFAR ASAD

    PRESENTED BY:
    M. HASSAN RAZA
    BASIT KHALIL
    ASIF SHAFQAT

    SECTION:
    “B”
    Final project of corporate finance
    Final project of corporate finance

    BALANCE SHEET
    Final project of corporate finance

    PROFIT & LOSS


    Final project of corporate finance

    KOHAT CEMENT PAKISTAN LIMITED

    DEGREE OF OPERATING LEVRAGE

    %AGE CHANGE IN EBIT/%AGE CHANGE IN SALE

    %AGE CHANGE IN EBIT

    Current EBIT_Previous EBIT/Previous EBIT

    693901047_36648971/36648971

    657252076/36648971

    18

    %AGE CHANGE IN SALE

    Current sale_previous sale/previous sale

    3395580759_1371791931/1371791931

    2023788828/1371791931

    1.5
    Final project of corporate finance

    DEGREE OF OPERATING LEVRAGE

    %AGE CHANGE IN EBIT/%age change in Sale

    18/1.58

    DEGREE OF OPERATING LEVRAGE= 12

    DEGREE OF FINANCIAL LEVERAGE

    EBIT/EBIT-I

    693901047/693901047_549902638

    693901047/143998409

    DEGREE OF FINANCIAL LEVERAGE= 4.81

    DEGREE OF TOTAL LEVRAGE

    DOLxDFL

    12x4.81

    57.72
    Final project of corporate finance

    WEGHTED AVERAGE COST OF COST OF CAPITAL

    Interest/Debtx100

    549902638/4392957769x100

    12.5%
    Final project of corporate finance
    Final project of corporate finance

    BALANCE SHEET
    Final project of corporate finance

    PROFIT & LOSS


    Final project of corporate finance

    THTTA CEMENT COMPANY LIMITED

    DEGREE OF OPERATING LEVRAGE

    %AGE CHANGE IN EBIT/%AGE CHANGE IN SALE

    %AGE CHANGE IN EBIT

    Current EBIT_Previous EBIT/Previous EBIT

    327116_139224/139224

    187892/139224

    1.34

    %AGE CHANGE IN SALE

    Current Sale_Previous Sale/previous Sale

    1795109-1415463/1415463

    0.24

    DEGREE OF OPERATING LEVRAGE

    %AGE CHANGE IN EBIT/%AGE CHANGE IN SALE

    1.34/0.24

    5.58
    Final project of corporate finance

    DEGREE OF FINANCIAL LEVERAGE

    EBIT/EBIT_I

    327116/327116-63718

    327116/263398

    1.24

    DEGREE OF TOTAL LEVRAGE

    DFLxDOL

    5.58x1.24

    6.91

    WEGHTED AVERAGE COST OF COST OF CAPITAL

    INTEREST/DEBTx100

    62813/326435x100

    19.24%
    Final project of corporate finance
    Final project of corporate finance

    BALANCE SHEET
    Final project of corporate finance

    PROFIT & LOSS


    Final project of corporate finance

    FAUJI CEMENT COMPANY LIMITED


    DEGREE OF OPERATING LEVRAGE

    %AGE CHANGE IN EBIT/%AGE CHANGE IN SALE

    %AGE CHANGE IN EBIT

    Current EBIT_Previous EBIT/Previous EBIT

    1646233-601518/601518

    1044715/601518

    1.74

    %AGE CHANGE IN SALE

    Current Sale_Previous Sale/previous Sale

    5314538-3545902/3545902

    1768636/3545902

    0.5

    DEGREE OF OPERATING LEVRAGE

    %AGE CHANGE IN EBIT/%AGE CHANGE IN SALE

    1.74/0.5

    3.48
    Final project of corporate finance

    DEGREE OF FINANCIAL LEVERAGE

    EBIT/EBIT_I

    1646233/1646233-224716

    1646233/1421517

    1.16

    DEGREE OF TOTAL LEVRAGE

    DFLxDOL

    3.48x1.16

    4.0368

    WEGHTED AVERAGE COST OF COST OF CAPITAL

    INTEREST/DEBTx100

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