As per MM Approach, if two firms are equal in all aspects except mode of financing, Overall cost capital as well as the value of both the firms has to be the same.
What is meaning in above paragraph Two firm in equal in all aspect.
manish (B.Com) (49 Points)
28 November 2014As per MM Approach, if two firms are equal in all aspects except mode of financing, Overall cost capital as well as the value of both the firms has to be the same.
What is meaning in above paragraph Two firm in equal in all aspect.
CA AnKiT BoHrA (AB)
(Manager)
(25955 Points)
Replied 28 November 2014
https://www.investopedia.com/walkthrough/corporate-finance/5/capital-structure/modigliani-miller.aspx
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