A company has all-equity capital structure. Its EBIT amounts to Rs 40,000. The cost of equity is 15%. Find the value of the firm assuming (a) no taxes, and (b) 30% tax rate. A company has Rs 2,00,000...

A company has all-equity capital structure. Its EBIT amounts to Rs 40,000. The cost of equity is 15%. Find the value of the firm assuming (a) no taxes, and (b) 30% tax rate.

A company has Rs 2,00,000 equity and 10% Rs 1,00,000 debt in its capital structure. EBIT is Rs 40,000. The cost of equity is 15%. Find the value of the firm when tax rate is 30%.