Operating income 50000, cost of debt 10% and outstanding debt 2,00,000. If the overall capitalisation rate is 12.5%, i) calculate the total value of the firm and the equity capitalisation rate. ii) Evaluate the outcome if debt increases to 3,00,000 to repurchase equity share. Calc. WACC. 1/12/2024 3:10 PM Sweta Tiwari 38 Computation of Total value of the firm and equity capitalisation rate Operating Income 50,000 Overall capitalisation rate 12.5% Total Value of firm 4,00,000 Value of Debt 2,00,000 Value of Equity 2,00,000 Equity Capitalisation rate ?? = ?0 (?0 ??) [ ? ? ] ii) When debt increases Operating Income 50000 Overall capitalisation rate 12.5% Total Value of firm 400000 Value of Debt 300000 Value of Equity 100000 Equity Capitalisation rate ?? = ?0 (?0 ??) [