6. Assuming no taxes and given the earnings before interest and taxes (EBIT), interest (I) at 10%...
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6. Assuming no taxes and given the earnings before interest and taxes (EBIT), interest (I)
at 10% and Equity Capitalisation rate (Ke) below, calculate the total market value of each firm under NI Approach:
Firms EBIT Interest Ke X 2,00,000 20,000 12%
Y 3,00,000 60,000 16%
Z 5,00,000 2,00,000 15%
W 6,00,000 2,40,000 18%
Also determine the weight average Cost of Capital for each firm.
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Anurag Agrawal
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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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