w2v

Example 4: Calculate the total value of the firm, equity capitalisation rate and verify the overall cost of capital as per NOI Approach from the following data: i) Earnings before Interest and Tax (EBIT) is 1 lac. ii) The cost of debt (KJ) is 10% iii) The outstanding debt amounts to 34 lac. iv) Assuming the overall capitalisation rate (K) is 12.5%