19.2 The following information is available for two firms, Box Corporation and Cox Corporation. Net operating income Interest on debt Cost of equity Cost of debt Box Rs. 2,000,000 Cox Rs. 2,000,000 Nil 500,000 15% 15% 10% 10% Calculate the market value of equity, market value of debt, and market value of the firm for Box Corporation and Cox Corporation.

(a) What is the average cost of capital for each of the firms?