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NOI Rs. 1,00,000, Rs.5,00,000 6% Debentures and overall capitalization rate is 10%. Condition a-If the debenture debt is increased to Rs.7,00,000 what will be the

NOI Rs. 1,00,000, Rs.5,00,000 6% Debentures and overall capitalization rate is 10%.

Condition a-If the debenture debt is increased to Rs.7,00,000 what will be the effect on the value of the firm?

Condition b- If the debenture debt is decreased to Rs. 3,00, 000 what will be the effect on the value of the firm?

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