Evaluate the four stated purposes that Lehman hopes to achieve with SpinCo. In particular, explain how these objectives will be met in a Modigliani-Miller world. What do the MM propositions say about the claim that the idea "requires too much equity beneath it"?

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The ModiglianiMiller MM theorem developed by Franco Modigliani and Merton Miller in 1958 states that the market value of a company is correctly calcul... View the full answer