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Find out value of financial charges of all three companies

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Three corporations Aashman Shumaila Fahim are identical and each has total assets of 100 million Ashman is 100% equity finance Shumaila has 0% interest bring debts and Fahim is equity is equal to value of assets. Tax rate is 25% on earning if the economics environment is goods all three firm shows operating income 100 under average and poor economics environments operating income will be 50 and 25 million respectively.

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Question 1: Find out the interest rate when discount rate is 15%

Question 2:  Find out the value of financial charges of all three companies

Question 3: Find out the value of sales if all three companies operating income is 10% of cost of goods sold, cost of goods sold is equal to gross profit in all economics environments

Reference no: EM132543687

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