• Profile photo of John Moffat says

      Firstly the example was only an illustration (and as I explained in the lecture, you could not be expected to do any numbers in the exam, just to be able to write what M&M said).

      Secondly, however, it is still possible to obtain a cost of debt borrowing even if you don’t borrow any! (I do not borrow money from the bank, but I know what interest I would be charged if I did borrow :-) )

  1. avatar says

    Mr Miller was a very clever man. He came up with this theory which we are all studying. Then he set up a trust (or whatever its called) where people put in alot of money so he could invest it on their behalf. And it collapsed. makes me wonder why am i even studying when this doesnt sort of make sense in the real world out there. Just saying as i see it. I guess u learn the real deal through experience rather than theory. Guess thats just the way it is. No wonder Albert Einstein hated a prescribed way of learning. Now its just more evident why the richest are school dropouts. Great lectures on f9 on the brighter note. thankyou

  2. Profile photo of Gabriel says

    I was watching this as part of my revision for P4, as it has come up in a past P4 question which I’m practicing and I had no clue of capital structures because I did F9 a long time ago but now I’ve refreshed my memory. Thanks.

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