Firm A with no debt has a value of $500 million. Firm B is identical to firm

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Firm A with no debt has a value of $500 million. Firm B is identical to firm A in every way except that it has $100 million in debt. Under the Modigliani and Miller model with no taxes, the value of firm B is $______ million.

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Fundamentals of corporate finance

ISBN: 978-0470876442

2nd Edition

Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates

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Posted Date: Dec 07, 2022 06:23 AM

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Firm A with no debt has a value of $500 million. Firm B is identical to firm

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Answer The value of firm B under the Modigliani and Miller model with no taxes is 500 million This i... View the full answer

Fundamentals of corporate finance

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