13. There are two firms P and Q which are identical in all respect except P does...
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13. There are two firms P and Q which are identical in all respect except P does not use any debt in its Capital Structure while Q has `10,00,000, 12% debentures. Both the firms have EBIT `2,50,000 and the capitalisation rate of firm P is 20%. Assuming corporate tax of 30%, calculate the value of these two firms and weighted average Cost of Capital under M-M approach.
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Financial Management
ISBN: 9789352605606
1st Edition
Authors: Swapan Sarkar, Bappaditya Biswas, Samyabrata Das, Ashish Kumar Sana
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