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2. Alpha Ltd is expecting an annual Earnings Before Interest and Tax of T150300. The company had 10% debentures of T 5 Lakhs. Calculate the
2. Alpha Ltd is expecting an annual Earnings Before Interest and Tax of T150300. The company had 10% debentures of T 5 Lakhs. Calculate the overall cost of capital of the firm if the cost of Equity is 12% assuming NI approach in the calculation. Suggest what happens to the value of the firm when more debentures are issued. {10 Marks)
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
