Question: please provide a full solution Question 1 a) In the Miller and Modigliani world without taxes, a leveraged firm with $50 million in debt and

please provide a full solution

Question 1 a) In the Miller and Modigliani world without taxes, a leveraged firm with $50 million in debt and a D/E ratio of 0.8 faces a cost of leveraged equity of 18%. If the unlevered equity cost of the firm would be 13% what would its market capitalization be if it sold new shares (at no cost) to buy back all the firm's debt

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