
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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The financial statements of TVS Motors report the following information (all values are in millions). Revenue: Rs. 112246, PBDIT: Rs. 8020, PBIT: Rs. 6100 and PBT: Rs. 5650. Shareholders Fund: Rs. 19368, Non-current liabilities: Rs. 9240, and Current liabilities: Rs. 18850. Due to financial leverage, how much the equity owners of TVS Motors gained (measured as difference between ROCE and cost of debt times Financial Leverage)?
3.43%
7.85%
15.92%
28.70%
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