2. Company A has net operating income of $1500,000 and $30 million of debt with a 12 percent interest rate. The earnings of the company are notexpected to grow, and all earnings are paid out to shareholders in the form of dividends. In all cases, assume no taxes. a. Using the net operating income approach with an equity capitalization rate of 15 percent at the $30 million debt level, A. compute the total value of the firm? B. Compute and the implied overall capitalization rate, ko? 2. Company A has net operating income of $1500,000 and $30 million of debt with a 12 percent interest rate. The earnings of the company are notexpected to grow, and all earnings are paid out to shareholders in the form of dividends. In all cases, assume no taxes. a. Using the net operating income approach with an equity capitalization rate of 15 percent at the $30 million debt level, A. compute the total value of the firm? B. Compute and the implied overall capitalization rate, ko