EBIT of different Firms are as follows, Interest (I) at 10% and Equity Capitalization Rate (Ke) below, calculate the Total Market Value of each firm and interpret. Explain the relevance of EBIT-EPS analysis, Indifference point and Financial Breakeven Point to firms. Firms EBIT I Ke (%) A 400000 40000 12% B 600000 120000 16% C 1000000 400000 15% D 1200000 480000 18%

EBIT of different Firms are as follows, Interest (I) at 10% and Equity Capitalization Rate (Ke) below, calculate the Total Market Value of each firm and interpret. Explain the relevance of EBIT-EPS analysis, Indifference point and Financial Breakeven Point to firms. Firms EBIT I Ke (%) A 400000 40000 12% B 600000 120000 16% C 1000000 400000 15% D 1200000 480000 18%

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter8: Evolutionary Solver: An Alternative Optimization Procedure

Section8.7: Portfolio Optimization

Problem 13P

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