19.5 Modigliani and Miller Approach The following information is available about Ashw Limited = 15 million Net operating income Tax rate = 60 percent Debt capital 20 million Interest rate on debt capital = 10 percent Capitalisation rate applicable to debt-free firm in the risk class to which Ashwini Limited belongs = 12 percent What should be the value of Ashwini Limited according to Modigliani and Miller? 19.6 Tax Advantage of Reht Itt 50 narcont