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     EduGorilla 
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    From the following data, answer the question.

    Sales                            : Rs. 75 lakh
    Variable costs               : Rs. 42 lakh
    Fixed costs                   : Rs. 6 lakh
    The firm has borrowed : Rs. 45 lakh @ 9% interest
    Equity Capital               : Rs. 55 lakh

    Compute financial leverage.

    Options :-

    1. 1.28
    2. 1.38
    3. 1.18
    4. 1.08
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