3. X Ltd.s EBIT is `5,00,000. The company has 10%, `20,00,000 debentures. The Equity Capitalisation rate is

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3. X Ltd.’s EBIT is `5,00,000. The company has 10%, `20,00,000 debentures. The Equity Capitalisation rate is 16%. You are required to calculate:

(i) Market value of equity and value of the firm.

(ii) Overall Cost of Capital .

Assume NI 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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Question Posted: Jul 24, 2024 03:04 AM

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3. X Ltd.s EBIT is `5,00,000. The company has 10%, `20,00,000 debentures. The Equity Capitalisation rate is

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Financial Management

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