9. Suppose the firms has a weighted average cost of capital of 101/2% assuming it has net operating earnings of N20,000 and a debt stock worth N15,000 issued at 8% rate of interest per annum, what is the market value of its equity? A. N175,476.19 B. N179,048.00 C. N35,500.00 D. N90,476.20

9. Suppose the firms has a weighted average cost of capital of 101/2% assuming it has net operating earnings of N20,000 and a debt stock worth N15,000 issued at 8% rate of interest per annum, what is the market value of its equity? A. N175,476.19 B. N179,048.00 C. N35,500.00 D. N90,476.20

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter12: Balanced Scorecard And Other Performance Measures

Section: Chapter Questions

Problem 7EA: Assume Skyler Industries has debt of $4,500,000 with a cost of capital of 7.5% and equity of...

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Question

What is the market value of its equity?

9. Suppose the firms has a weighted average cost of capital of 101/2%
assuming it has net operating earnings of N20,000 and a debt stock worth
N15,000 issued at 8% rate of interest per annum, what is the market
value of its equity?
A. N175,476.19
B. N179,048.00
C. N35,500.00
D. N90,476.20

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