If the debentures debt is increased to rs 1000000 what will


XYZ expects a net operating income of Rs. 2,00,000. It has 8,00,000, 6% debentures. The overall capitalization rate is 10%. Calculate the value of the firm and the equity capitalization rate (Cost of Equity) according to the net operating income approach. If the debentures debt is increased to Rs. 10,00,000. What will be the effect on volume of the firm and the equity capitalization rate?

Solution Preview :

Prepared by a verified Expert
Finance Basics: If the debentures debt is increased to rs 1000000 what will
Reference No:- TGS01460690

Now Priced at $10 (50% Discount)

Recommended (98%)

Rated (4.3/5)