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Assume the firm funds itself with full equity issuance and its market value $1,000,000. The share holders of the firm want to increase leverage and
- Assume the firm funds itself with full equity issuance and its market value $1,000,000. The share holders of the firm want to increase leverage and issue debt of 75% from the MV of the firm
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- What is the BE EBIT?
- IF EBIT is higher than the BE EBIT would you recommend issuing the debt?
- Will the change in Capital structure affect the EBIT flow of the firm?
- How does this connected with Miller Modiglani statement?
- What is the BE EBIT?
- IF EBIT is higher than the BE EBIT would you recommend issuing the debt?
- Will the change in Capital structure affect the EBIT flow of the firm?
- How does this connected with Miller Modiglani statement?
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