Q$2)$ a$)$ Following is the condensed income statement of a fim for the current year.

$\backslash$begin$\{$tabular$\}\{|$c$|$c$|$c$|\}$

$\backslash$hline & Particulars & Rs$.\backslash$

$\backslash$hline $\backslash$multirow$[$b$]\{2\}\{\}\{$ Less: $\}$ & Interest costs & $12,000\backslash$

$\backslash$hline & Earning Before Taxes & $1,88,000\backslash$

$\backslash$hline $\backslash$multirow$\{2\}\{*\}\{$

$\backslash$table$[[$Less :$],[$Earnit$]]\}$ & Taxes $(40\%)$ & $75,200\backslash$

$\backslash$hline & fter taxes & $1,12,800\backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$

The firms existing capital structure consists of Rs$.1,50,000/-$ equity funds having $15\%$ cost and of Rs$.1,00,\frac{000}{-}12\%$ debt. Determine the economic value added during the year.

OR

b$)$ Two firms XYZ Ltd$.$ and ABC Ltd$.$ are identical in all respect, except leverage in capital structure XYZ Ltd$.$ has $10\%$ Rs$.3,00,000/-$debentures. Both the firms have the same Earning before Interest and tax of Rs$.50,\frac{000}{-}$ The equity Capitalization rate of XYZ Ltd$.$ is $16\%$ and ABC Ltd $12\mathrm{.}5\%.$ You are required to calculate the total Value of each firm.