solve 11th and 12 th question

10. The net operating profit of a firm is Rs. 210,000 same risk class is 16%. Find out the value of the levered firm given that capitalization rate of an unlevered firm of the same risk cass is class the tax rate is 30% for both the firms. 12. Companies U and L are identical in every Rs. 2000,000 of 8% Debentures outstanding. Assume (1) that all the MM assumptions arc......... tax rate is 50%, (3) that EBIT is Rs. 600,000 and that equity capitalization rate for company U is 10%. a. What would be the value for each firm according to MM approach? b. Suppose VU=Rs.2500,000 and VL=Rs.4500,000. According to MM, do they represent equilibrium values? If not, explain the process by which equilibrium will be restored