a) outline the main approaches of equity valuations as demonstrated in MM 1961

b) "In terms of valuing companies' equities, the MM model is superior to the Ohlson company valuation model according to recent empirical evidence". Evaluate the above statement and discuss implications for share valuation

Question 4: I a. Outline the main approaches of equity valuations as demonstrated in Modigliani and Miller (1961). (20%) b. "In terms of valuing companies' equities, the Miller Modigliani model is superior to the Ohlson company valuation model according to recent empirical evidence". Evaluate the above statement and discuss the implications for share evaluation. (80%)