b) The following data relate to XYZ company Limited. Net operating income C1,000,000 Total investment C5,000,000 Equity capitalization Rate: (a) If the firm uses no debt 10% (b) If the firm uses C250,000 debentures 11% (c) If the firm uses C4,000,000 debentures 13% Assume that C55,000,000 debentures can be raised at 6% rate of interest whereas Using the traditional approach, compute i. the market value of shares, 9 marks ii. value of the firm and 9 marks iii. the average cost of capital. 9 marks