Modigliani and Miller developed a theory describing a firms optimal capital structure, ranging from a basic model assuming no corporate taxes, to an intermediate model including corporate taxes, and ultimately a model providing for costs of financial distress.

Required (max 200 words)

Explain only using your OWN WORDS (plagiarism would be checked):

Requirement-A. In your final assessment question set, consider the situation of a mini-case that has CODE starting with the letter 'Q' and explain which of these models would be applicable to that company.

Requirement-B Give examples of the type of practical companies where each of these three models would be applicable. Justify your answer. The explanation of the model is NOT required.