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Assuming no taxes and given the earnings before interest and taxes (EBIT), Interest (l) at 10% and equilty capitalisation rate (K) below, calculate the total
Assuming no taxes and given the earnings before interest and taxes (EBIT), Interest (l) at 10% and equilty capitalisation rate (K) below, calculate the total market value of each firm under Net Income Approach: Firms EBIT 1 K 2,00.000 20,000 Y 3,00,000 80,000 Z 5,00,000 2,00,000 W 6,00,000 2,40,000 Also determine the welght average cost of capital for each firm. 12.0% 18,0% 15.0% 18.0%
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