Modigliani and Miller - part 2
In this video, you'll learn how to evaluate capital structure theory statements—a key skill for understanding how financing decisions affect company value.
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In this lesson
- 0:00 Capital structure theory statements
- 0:30 Evaluating traditional view and M&M propositions
About this lesson
You'll explore the differences between the traditional view and Modigliani and Miller propositions, including how tax changes the analysis, and practise identifying which statements about cost of equity, WACC, and business risk are true or false. This directly supports FM and AFM papers, where capital structure theory forms the foundation of financial decision-making.
Duration: 1m
Transcript
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