A firm has EBIT of ₹ 50,000. Market value of 10% debt is ₹ 80,000 and overall capitalization rate is 20%. Market value of Equity under NOI Approach will be ₹:

CS Executive · Financial and Strategic Management · PYQS · June 2024
A firm has EBIT of ₹ 50,000. Market value of 10% debt is ₹ 80,000 and overall capitalization rate is 20%. Market value of Equity under NOI Approach will be ₹:
(A) 2,50,000
(B) 1,70,000
(C) 30,000
(D) 1,30,000

Answer & Explanation:

Correct Answer: Option (B)

Official answer key: (B).

Topics: Financial Management

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