Question

LT India Ltd has the following capital structure, which it considers optimal:
Debt 35%
Equity shares 65%
Total 100%
Applicable tax rate for the company is 25%. Risk free rate of return is 6%, average equity market investment has expected rate of return of 12%.
The company's beta is 1.10.
Debt will hear an interest rate of 9% pa.%
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Answer 1

Answer:

e

Explanation:

If a pair of linear equations is consistent, then the graph of the lines will be

(a) Parallel (b) intersecting (c) intersecting or coincident d) always coincident