Advanced Questions

1:

A firm has EBIT of Rs. 50,000. Market value of debt is Rs. 80,000 and overall capitalization rate is 20%. Market value of firm under NOI Approach is

A.

Rs. 2,50,000

B.

Rs. 1,70,000

C.

Rs. 30,000

D.

Rs. 1,30,000

 

Answer : B

Explanation :

Chidananda H L said: (10:42pm on Saturday 30th September 2017)
As per my knowledge V=EBIT/Ko is the formula to calculate value of the according to the given information. If we simply above formula by using given data 50000/.20= 250000.

Write your comments here:


Report Error
 

Option: A

Explanation : Explanation will come here. Explanation will come here. Explanation will come here. Explanation will come here. Explanation will come here.