M and M Flashcards
1
Q
M & M Proposition I and II
A
The change in the capital structure weights (E/V and D/V) is exactly offset by the cahgne in the cost of equity (Re), so the WACC stays the same
2
Q
M&M Proposition I and II with tax
A
3
Q
Optimal capital structure
A
4
Q
Proposition II with taxes
A
