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