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Author Question: According to Modigliani and Miller, altering a firm's capital structure will not change a firm's value because (Read 63 times)

CharlieWard

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on: Apr 25, 2021
According to Modigliani and Miller, altering a firm's capital structure will not change a firm's value because
◦ taxes have no effect on capital structure decisions.
◦ the value of a firm is based on the earnings power of its assets.
◦ markets are not efficient and shareholders can be fooled by capital structure changes.
◦ bankruptcy costs rise when debt levels increase.
◦ the cost of equity falls as more debt is issued.
Corporate Finance Online ¦ Eakins, McNally ¦ 2nd Edition
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Marked as best answer by CharlieWard on Apr 25, 2021

Kdiggy

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Reply #1 on: Apr 25, 2021
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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CharlieWard

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Reply 2 on: Apr 25, 2021
Thanks for the timely response, appreciate it

Joy Chen

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Reply 3 on: Yesterday
Excellent

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