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From the following selected data, determine the value of the firms M and N which belongs to the same risk class under 1. NI Approach
From the following selected data, determine the value of the firms M and N which belongs to the same risk class under 1. NI Approach 2. NOI approach
Tax rate 50%. Which of the two firms has optimum capital structure
Particulars | Firm M Levered | Firm N Unlevered |
EBIT | 400000 | 400000 |
Interest @ 10% | 100000 | - |
Cost of equity | 15% | 15% |
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