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Answered Same Day Nov 17, 2021

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Himanshu answered on Nov 17 2021

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Sheet1
    Ans 5                                The Modigliani-Miller theorem states that a company's capital structure is not a factor in its value.
                                    Market value is determined by the present value of future earnings, the theorem states.
                                    Risk Free rate/Long Term Bonds = 0.15%            0.0015        Overnight Yield         -0.0035
        Cost of equity                            Market Risk Premium = 6.75%        0.0675
    Beta    1    Assuming beta 1, using Similar company data                        Corporate taxes         0.3
        Risk free rate+beta*(Market risk premium)                            Cost of Capital         Percentage of equity*Cost of...

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