7. A company has annual NOI of `1,05,000. It has 9% debentures of `5,00,000. The overall capitalisation

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● 7. A company has annual NOI of `1,05,000. It has 9% debentures of `5,00,000. The overall capitalisation rate is 10%. You are required to calculate the value of the firm and the 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 is increased to `6,00,000?

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Financial Management

ISBN: 9789352605606

1st Edition

Authors: Swapan Sarkar, Bappaditya Biswas, Samyabrata Das, Ashish Kumar Sana

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