-If the company’s EBIT is OMR 500,000; market value of the equity is OMR 2,000,000 and value of Debt is OMR 4,000,000; then what is the overall cost of capital of the firm under Net Income Approach? a. 8.33% b. 10% c. 12.5% d. 25%
-If the company’s EBIT is OMR 500,000; market value of the equity is OMR 2,000,000 and value of Debt is OMR 4,000,000; then what is the overall cost of capital of the firm under Net Income Approach? a. 8.33% b. 10% c. 12.5% d. 25%
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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50-If the company’s EBIT is OMR 500,000; market value of the equity is OMR 2,000,000 and value of Debt is OMR 4,000,000; then what is the overall cost of capital of the firm under Net Income Approach?
a.
8.33%
b.
10%
c.
12.5%
d.
25%
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