A company has earnings before interest and taxes of Rs1,00,000. It exp – McqOptions

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1.	A company has earnings before interest and taxes of Rs1,00,000. It expects a return on investment at a rate of 12.5%. What is the total value of the firm according to MM Theory?
A.	Rs6,00,000
B.	Rs7,00,000
C.	Rs8,00,000
D.	Rs9,00,000
Answer» D. Rs9,00,000

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