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QUESTION 1. Suppose we live in a world in which Modgliani Miller is true, that is no information or tax issues and capital structure is irrelevant. A firm currently has 1,000 shares outstanding, each with a price of $210. The firm announces a 1 for 5 “Rights...
QUESTION 1. Suppose we live in a world in which Modgliani Miller is true, that is no information or tax issues and capital structure is irrelevant. A firm currently has 1,000 shares outstanding, each with a price of $210. The firm announces a 1 for 5 “Rights...
