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3. There are two firms which are identical in all respects except in terms of their capital structure as can be observed from the details

3. There are two firms which are identical in all respects except in terms of their capital structure as can be observed from the details given below: R Ltd. S Ltd. Levered Unlevered EBIT (Rs.) 2,00,000 2,00,000 Debt (Rs.) 6,00,000 0 Rate of Debt 15% __ Ke 20% 15%

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