资本资产定价模型WACC.pptxVIP

会计学1 MM (Debt Policy Doesn’t Matter)Modigliani Miller (Proposition I)When there are no taxes and capital markets are perfect, the market value of a company does not depend on its capital structure.The Value of the firm does not change with debt: VL = VU第1页/共18页 Return on Assets (wacc)No TaxesNote: rA = WACC (with no taxes)第2页/共18页 MM Proposition IIV = D + EThese should be Market values!The cost of equity capital increases with financial leverage – due to the increase in Risk!第3页/共18页 rDErDrEMM Proposition IIrA = WACCRisk free debtRisky debt第4页/共18页 Leverage and