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karlec karlec
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3 years ago
According to M&M Proposition I (no taxes) can a firm change its market value by splitting its cash flows into different proportions of dividends and interest? That is, by adjusting its capital structure but not changing its productive capacity?

▸ Yes

▸ No

▸ Yes, but only if shareholders use homemade leverage

▸ No, because the interest tax shields remain unchanged
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Corporate Finance Online

Corporate Finance Online


Edition: 2nd
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missnonamemissnoname
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3 years ago
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karlec Author
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3 years ago
This calls for a celebration Person Raising Both Hands in Celebration
missnoname
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You make an excellent tutor!
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this is exactly what I needed
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