This note provides an interactive illustration of Modigliani-Miller theory of the boards of tax debt levered firm value. Students must evaluate (1) the impact of hypothetical changes in the capital structure on firm value, and (2) the impact of large-scale recapitalization of the company's share price by a set of Koppers partial sheet. After completing the worksheets, students compare the results to problems.
This Darden study. "Hide
by Robert F. Bruner and Sean Carr Source: Darden School of Business 6 pages. Publication Date: March 28, 1991. Prod. #: UV0070-PDF-ENG
Related Case Solutions & Analyses:
Introduction to the Canadian Income Tax System (Revised)
Capital Structure and Value
Barack Obama and the Bush Tax Cuts (A)
How Managers Can Lower Mental Illness Costs by Reducing Stigma
Make Green Delicious: Sustainability at Jamie Kennedy Kitchens
AARP and AARP Services Multi-Sector Approach to Social Change
Deferred Taxes and the Valuation Allowance at Lucent Technologies Inc. (B)
Employee Stock Options at Microsoft Corporation
Family Firms in the Newspaper Industry
Diageo Plc
