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Modigliani Miller. No tax scenario. Complete the following table: assume identical companies, except for their leverage. Include the WACC formula with the data used to
Modigliani Miller. No tax scenario. Complete the following table: assume identical companies, except for their leverage. Include the WACC formula with the data used to obtain result. Company Unlevered Levered Operating earnings Total market value Value of equity Value of debt Cost of debt as a % Interest expenses Cost of equity as a % Cost of capital as a % $225 $2,300 a) $0 7.0% $0 b) c) $225 d) e) $650 7.0% f) g) h) WACC i) Modigliani Miller. No tax scenario. Complete the following table: assume identical companies, except for their leverage. Include the WACC formula with the data used to obtain result. Company Unlevered Levered Operating earnings Total market value Value of equity Value of debt Cost of debt as a % Interest expenses Cost of equity as a % Cost of capital as a % $225 $2,300 a) $0 7.0% $0 b) c) $225 d) e) $650 7.0% f) g) h) WACC i)
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