A company PQR Ltd. has EBIT of ₹2,00,000. Expected return on its Investment @of 12%. What is the total value of the firm according to Miller-Modigliani theory?

CS Executive · Financial and Strategic Management · PYQS · December 2020
A company PQR Ltd. has EBIT of ₹2,00,000. Expected return on its Investment @of 12%. What is the total value of the firm according to Miller-Modigliani theory?
(A) ₹16,66,667
(B) ₹17,85,714
(C) ₹20,00,000
(D) ₹22,40,000

Answer & Explanation:

Correct Answer: Option (A)

Official answer key: (A).

Topics: Financial Management

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