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4. BIUTIBIUTI Ltd. is expecting annual earnings before the payment of interest and tax of 20,000,000. The company inits capital structure has 80,000,000 in
4. BIUTIBIUTI Ltd. is expecting annual earnings before the payment of interest and tax of 20,000,000. The company inits capital structure has 80,000,000 in 10% Debentures. The cost of equity or capitalization rate is 12.5%. You are required to calculate the value of firm according to NI Approach. Also compute the overall cost of capital.
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Financial Institutions Management A Risk Management Approach
Authors: Marcia Cornett, Patricia McGraw, Anthony Saunders
8th edition
978-0078034800, 78034809, 978-0071051590
