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3. A company's current operating income is 35 lakhs. The firm has 312 lakhs of 10 percent debt outstanding. Assume tax rate as 50%. Determine

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3. A company's current operating income is 35 lakhs. The firm has 312 lakhs of 10 percent debt outstanding. Assume tax rate as 50%. Determine the value of the firm using Net Income Approach if the cost of equity capital is estimated to be 14%. Estimate as the finance manager of the company: a. Value of the Equity of the firm (5 Marks) b. Overall cost of capital of the firm

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