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answer only if u know correct answer.. otherwise I will give 10 downvotes ILLUSTRATION 5: When value of levered firm is more than the value
answer only if u know correct answer.. otherwise I will give 10 downvotes
ILLUSTRATION 5: When value of levered firm is more than the value of unleveres firm There are two company N Ltd. and M Ltd., having some earnings before interest and taxes ie. EBIT of 20,000. M Ltd. is a levered company having a debt of 31,00,000 @ 7 rate of interest. The cost of equity of N Ltd. is 10% and of M Ltd. is 11.50%. Find out how arbitrage process will be carried onStep by Step Solution
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