7. From the following information relating to a company, determine the optimum Capital Structure under NI approach.
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7. From the following information relating to a company, determine the optimum Capital Structure under NI approach.
Debt as a % of total capital Before tax cost of debt (%) Cost of equity (%)
0 10 15 10 10 15 20 10 16 30 11 17 40 12 18 50 14 19 60 15 21 70 18 24 Corporate tax may be taken at 50%.
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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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