Question: (1) Using Modigiliani and Millers Proposition II, determine the required return on unleveraged equity. (2) Evaluate why violations of the Modigiliani and Miller assumptions of

(1) Using Modigiliani and Millers Proposition II, determine the required return on unleveraged equity.

(2) Evaluate why violations of the Modigiliani and Miller assumptions of perfect markets require revisions to your capital budgeting analysis.

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