SKU: a4b6dae367c1 Category:

Academic MBA Question:

Question: Alpha Ltd is expecting an annual Earnings Before Interest and Tax of 1,50,000. The company had 10% debentures of  5 Lakhs. Calculate the overall cost of capital of the firm if the cost of Equity is 12% assuming NI approach in the calculation. Suggest what happens to the value of the firm when more debentures are issued.


Academic Assignment Answer:

Single Question and Answer