5. A company has annual NOI of `5,00,000. It has `30,00,000 8% debentures. The overall capitalisation rate
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● 5. A company has annual NOI of `5,00,000. It has `30,00,000 8% debentures. The overall capitalisation rate is 10%. You are required to calculate the value of the firm and Equity Capitalisation rate according to the NOI approach. What will be the effect on the value of the firm and the Equity Capitalisation rate if the debenture debt is increased to 40,00,000.
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Related Book For 
Financial Management
ISBN: 9789352605606
1st Edition
Authors: Swapan Sarkar, Bappaditya Biswas, Samyabrata Das, Ashish Kumar Sana
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