Question: Question No. 4 (4 + 6=10) a. Discuss the advantages and disadvantages of simulation analysis. b. Marvel Inc. Company has a capital of 1,000,000 and

Question No. 4 (4 + 6=10) a. Discuss the advantages and

Question No. 4 (4 + 6=10) a. Discuss the advantages and disadvantages of simulation analysis. b. Marvel Inc. Company has a capital of 1,000,000 and company's EBIT is 100,000. We have the following data from the capital market: Page 2 of 4 Amount of debt Interest rate (%) Equity rate (%) 0 10 100,000 4 10.50 200,000 4 11 4.5 11.6 300,000 400,000 5 12.4 500,000 5.5 13.5 600,000 6 16 700,000 8 20 What amount of debt should be employed by the firm if the traditional approach is held valid?|

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