8. Firms X and Y are identical except that firm X is not levered while

1.	8. Firms X and Y are identical except that firm X is not levered while Firm Y is levered. The followingdata relate to them :Firm XF ₹5,00,0000Firm Y₹ F5,00,0002,50,000AssetsDebt capital(9% Interest)Equity share capitalNo. of sharesRate of Return on assets5,00,0002,50,000(50,000)(25,000)20%20%Calculate EPS for both firms, assuming tax rate of 50%. Will it be advantageous to firm Y to raisethe level of debt capital to 75% ?
Answer» ANSWER: I don't KNOW what is answer of your QUESTION

8. Firms X and Y are identical except that firm X is not levered while Firm Y is levered. The followingdata relate to them :Firm XF ₹5,00,0000Firm Y₹ F5,00,0002,50,000AssetsDebt capital(9% Interest)Equity share capitalNo. of sharesRate of Return on assets5,00,0002,50,000(50,000)(25,000)20%20%Calculate EPS for both firms, assuming tax rate of 50%. Will it be advantageous to firm Y to raisethe level of debt capital to 75% ?

Answer»

I don't KNOW what is answer of your QUESTION