Modigliani and Miller Proposition 2 – Rearranged formula

Please note that from the September 2024 exam session onwards, the AFM formal sheet has been amended to include a rearranged version of the Modigliani and Miller proposition 2 formula. Using this is easier than rearranging the formula yourself as explained in our free lectures.

Check out the ACCA video showing when and when not to use the formula, and how to use it in a spreadsheet.
https://www.youtube.com/watch?v=ePQ3fnW6Y3M