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2. Nestle India Pvt. Limited., has net operating income of Rs 2,00,000 on an investment of Rs 10,00,000 in assets. It can raise debt at

2. Nestle India Pvt. Limited., has net operating income of Rs 2,00,000 on an investment of Rs 10,00,000 in assets. It can raise debt at a 16% rate of interest. Assume that taxes do not exist. A. Using the NI approach and an equity capitulation rate of 18%, compute the total value of the firm and the overall cost of capital, if the firm has a. . No debt b. Rs 3,00,000 debt c. Rs 6,00,000 debt B. Using NOI approach and an overall capitalisation rate of 12%, compute the total value of the firm and the cost of equity, if the firm has a. No debt b. Rs 3,00,000 c. Rs 6,00,000

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