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Company ABC is a construction company earning Rs.200,000 with a required rate of return of 20%. If the company has employed 20 Lacs of debt

Company ABC is a construction company earning Rs.200,000 with a required rate of return of 20%. If the company has employed 20 Lacs of debt & 30 lacs of equity in its total capital, then find out whether the firm is over-capitalised or under- capitalised and, if so, by how much?

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