Beta Limited has an operating gearing of 3. If activity increases by 10% the profit of the business will increase by Ca 10% Ob. profit will remain unchanged Oc 30% Od.3%

EBK CFIN
6th Edition
ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
Chapter2: Analysis Of Financial Statements
Section: Chapter Questions
Problem 10PROB
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QUESTION 1
Beta Limited has an operating gearing of 3. If activity increases by 10% the profit of the business will incroase by
Ca. 10%
Ob. profit will remain unchanged
Oc 30%
Od.3%
Transcribed Image Text:QUESTION 1 Beta Limited has an operating gearing of 3. If activity increases by 10% the profit of the business will incroase by Ca. 10% Ob. profit will remain unchanged Oc 30% Od.3%
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