Meaning of Modigliani-Miller
Briefly describe the meaning of Modigliani- Miller (M and M) approach?
Expert
Modigilani-Miller approach is also termed as MM approach that looks related to Net operating income approach. It is in harmonization with the Net operating income approach and states in recognition with the approach that cost of capital is sovereign of degree of leverage. It offers justification for operational and behavioral for constant cost of capital at any degree of leverage as this is not being offered by the Net operating Income approach. It is been guessed in this approach that capital markets are ideal and the investors are investing in the company since the same expectation of the company's net operating income in search of measuring the value of the firm. The intentions of this approach can be mentioned in the subsequent ways and it is illustrated below:-
i) Company's whole cost of value and capital of the firm is stable at any degree of influence as it is independent of the capital composition. ii) Capital investment that has the minimum cut-off rate is as well independent of project finances. If this approach has benefits then it has certain drawbacks associated with it and the drawbacks are illustrated below:- i) Investors discover the leverages not convenient and risk insight of corporate and personal leverage is dissimilar. ii) Corporate does not exist however it gets confiscated later. iii) Arbitrary process does not have any limits and it is as well not be affected through transaction cost.
Describe North American Free Trade Agreement (NAFTA)?
Describe the meaning of the term “invisible hand.”
Elucidate Participants in international trade of U.S. and World Trade?
Evaluate and explain the statements: “The market system is a profit-and-loss economy”
‘Mama’ Jean consists of one employee bake crumbly, graham cracker crusts at Mama’s Home-Pies, whereas the other stirs gooey, hot, apple filling. Her staff is organized in accord with a/an: (1) Task management system. (2) Division of labor. (3) Compar
Why private goods are produced through the market?
Illustrate the Risks involved with bonds?
Explain how the Circular Flow Model for a Market-Oriented System?
Marrying the one you love involves opportunity costs, mainly since: (i) being married limits your freedom to marry someone else, and you should also consider making someone else happy while making decisions which affect both of you. (ii) two can live
In modern parlance, David Hume statement regarding money which is Tis none of the wheels of trade. And tis the oil, was referring to the notion that money: (i) is relatively costly to produce. (ii) facilitates divisions of labor and specialization and
18,76,764
1935896 Asked
3,689
Active Tutors
1441642
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!