If the market price of total assets is Rs 1,00,000, what should be the consolidated amount of debt and equity? Indicate this on the basis of the cost theory of capitalisation. A company has a capital...

If the market price of total assets is Rs 1,00,000, what should be the consolidated amount of debt and equity? Indicate this on the basis of the cost theory of capitalisation.

A company has a capital of Rs 10,00,000. The value of its assets amounts to Rs 10,00,000. Its earnings amount to Rs 90,000. The rate of return in the industry is 10%. Does it show optimal capitalisation?