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A company expects a net operatingincome of Rs 2,00,000. It has Rs 10,00,000 6% Debentures. The overallcapitalization rate is 10%. Calculatethe value of the firm and the equitycapitalization rate according to theNet Income approach. Also if thedebt is increased to Rs 15,00,000,what will be the effect on the valueof the firm and the equitycapitalization rate? |
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Answer» Answer: Step-by-step explanation: |
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