1. There are two firms which are identical in all respects except in terms of their capital structure
as can be observed from the details given below:
R Ltd. S Ltd.
Levered Unlevered
EBIT (Rs.) 2,00,000 2,00,000
Debt (Rs.) 6,00,000 0
Rate of Debt 15% __
Ke 20% 15%
Answers
Answered by
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Answer:
Rate of debt 15% above. all of these
Answered by
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Answer:
r Ltd firm value = rs 11,50,000
r Ltd firm value = rs 13,33,333
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