A Linited and B Limiled are itentical axcept for capilal stuctures. A Lta. has 60 per cent debt and 40 per cent equity, whereas B Lid. has 20 per cent debt and 80 per cent equily. (All) percentages are in market-valus terms.) The borrowing rate for both compenies is 8 per cent in a no-tax world, and capital markets are assumed to be perrect. (e) (i) If X, owns 3 per cent of the equity shares of A Ltd., determine his retum if the Company has not operaling income of 4,50,000 and the overall cepilalization rale of the company, (K0) is 18 per cent. (ii) Calculate the implied required rate of retum on equity of A Lid. (b) B Lid. has the same net operating income as A Lid. (i) Calculate the implied required equity return of B Lid. (ii) Analyse why does in differ from that of A Ltd. (10 Marhs)