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A firm finances all its investment by 40% debt and 60% equity. The estimated rate of return on equity is 20% after taxes and of
A firm finances all its investment by 40% debt and 60% equity. The estimated rate of return on equity is 20% after taxes and of the debt is 8% after taxes. The firm is considering an investment proposal that will last forever. What amount in rupees must the proposal yield(after tax) per year so that the market price of the share does not change?
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