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modigilani and miler

Former userFormer user11y ago

[Content removed at user request]

John MoffatJohn MoffatTutor11y ago#1
On Page 57 of our free course notes we explain the formula! Ke is the cost of equity when there is gearing. Kei is the cost of equity when there is no gearing. It is relevant when the gearing changes (although you can always get to the same result using betas and the asset beta formula).
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