capital structure numerical problem

Net Income (NI) Approach to Capital Structure (Numerical Problem)

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Here are some of the numerical problem of Capital Structure from Net Income Approach. Numerical 1 A company, Alexa Ltd., has an EBIT of $120,000. The total capital is $1,000,000, with 60% equity and 40% debt. The cost of debt is 8%, and the equity capitalization rate is 10%.Calculate:1. Net income.2. Value of the firm … Read more

Solved Numerical Problems of Capital Structure Approaches

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Capital structure solutions

Introduction Capital Structure is the combination of all the long-term sources of finances. Capital structure theories relate the capital structure of firm, capital mix and value of the firm; basically capital structure theories relate financial leverage with value of the firm. There are four widely accepted theories on capital structure: Some of the solved numerical … Read more