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Considering the Modigliani & Miller world of capital structure ( where all of their assumptions hold ) : a . In that world without taxes,
Considering the Modigliani & Miller world of capital structure where all of their assumptions hold:
a In that world without taxes, does capital structure impact the cost of equity Rs Whyhow
b In that world without taxes, does capital structure impact WACC? Whyhow
c In that world without taxes, does capital structure matter is the value of the firm impacted by it or is there an ideal capital structure Explain.
d Adding taxes, does capital structure impact the cost of equity Rs Whyhow
e In that world, with taxes, does capital structure impact WACC? Whyhow
f In the world with taxes, does capital structure matter? is the value of the firm impacted by it or is there an ideal capital structure Explain.
g Neither of the worlds above have conclusions that mesh with reality. What did we discuss that adapted the above model to meet with how companies really seem to behave? How did that adaptation lead to something more realistic?
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