Modigliani and miller approach

Vu =EBIT(1-t)/ko When there is no debt and interest in unlivered structure why we are reducing tax component ?

Rahul H

CA Inter

★ 0

15-Aug-20 16:14

Answers (2)

Because tax is still applicable on the income of an entity that is attributable to the shareholders

Sriram Somayajula

Admin

15-Aug-20 16:28

Okay

Rahul H

CA Inter

★ 0

15-Aug-20 16:59

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