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Problems in valuation of business firm Nl approach Activity 9: Zomato LLC expects to earn net operating income of OMR 150,000 annually. The Company issued

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Problems in valuation of business firm Nl approach Activity 9: Zomato LLC expects to earn net operating income of OMR 150,000 annually. The Company issued 8% 600,000 debentures which is part of the debt portion of the capital structure. The expected cost of equity capital of the Company is 10%. a) What would be the value of Company and overall cost of capital? b) Find the impact of change in debt on value of the company and WACC, other things remaining constant if; Debentures are increased to 1,200,000. Debentures are decreased to a value of 300,000 AT 40 2000 LA) EBITS TU 1. wie 48000

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