Question
Modigliani & Miller Approach : The Following information is available about Ashwini Limited: Net operating income = 15 Million Tax Rate = 60 % Debt
Modigliani & Miller Approach : The Following information is available about Ashwini Limited:
Net operating income = 15 Million
Tax Rate = 60 %
Debt Capital = 20 Million
Interest Rate on Debt Capital = 10 %
Capitalisation rate applicable to debt free firm in the risk class to which Ashwini limited belongs = 12 %
What should be the value of Ashwini Limited according to Modigliani & Miller ?
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Bond Markets Analysis and Strategies
Authors: Frank J.Fabozzi
9th edition
133796779, 978-0133796773
