Weston Norton
01/06/2023 · High School
15. Blue Sky Ltd., has an EBIT Rs. \( 2,00,000 \). The cost of debt is \( 10 \% \) and the outstanding debt is Rs. \( 9,00,000 \). The overall capitalization rate (Ke) is \( 12.5 \% \). Calculate the total value of the firm (V) and equity capitalization rate (Ke).
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Total Value of the Firm (V) = Rs. 16,00,000
Equity Capitalization Rate (Ke) = 15.71%
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