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98 Financial Management<br />

14. The following details are available for the two <strong>com</strong>panies.<br />

X Ltd. Y Ltd.<br />

Fixed Assets 4,00,000 6,00,000<br />

Current Assets 6,00,000 4,00,000<br />

Total Asset 10,00,000 10,00,000<br />

Earnings Before Interest and Taxes 1,50,000 1,50,000<br />

You are required to <strong>com</strong>pare the sensibility of the two <strong>com</strong>panies for a 30%<br />

changes in the level of current assets with the help of using capital leverages.<br />

(Ans. X .73, Y 4.5)

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