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

CS Executive · Financial and Strategic Management · PYQS · December 2020
A firm has EBIT of ₹50,000. Market value of debt is ₹80,000 and overall capitalization rate is 20%. Market value of equity under NOI Approach is:
(A) ₹1,70,000
(B) ₹2,50,000
(C) ₹30,000
(D) ₹1,30,000

Answer & Explanation:

Correct Answer: Option (A)

Official answer key: (A).

Topics: Financial Management

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