Q28 If the company’s Earnings before interest and taxes (EBIT) are OMR 60,000, its cost of equity is 8% and overall cost of capital is 12%, what is the total value of the firm under Net Operating Income Approach? a. OMR 500,000 b. OMR 750,000 c. OMR 900,000 d. OMR 600,000

EBK CFIN
6th Edition
ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
Chapter2: Analysis Of Financial Statements
Section: Chapter Questions
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Q28

If the company’s Earnings before interest and taxes (EBIT) are OMR 60,000, its cost of equity is 8% and overall cost of capital is 12%, what is the total value of the firm under Net Operating Income Approach?
a.
OMR 500,000
b.
OMR 750,000
c.
OMR 900,000
d.
OMR 600,000
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