FIN 401 - Modigliani-Miller (M&M) Proposition 1 and 2 (no tax) - Part 4

[@faisalhabibie3630]

is it only me who watch these video for corporate finance final exam? great video, love your explanation

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[@nickno2980]

Me too (after 5 years)

[@tasnimmaria9332]

@@nickno2980I was just about to say that too

[@kalyaniiyer5589]

Part 1 to Part 4 taught me that my uni professor could not teach! THANK YOU

[@05fgardner]

You have a real talent for teaching. Life saver!

[@adamastrading2418]

THANK YOU!! CANT THANK YOU ENOUGH. I FELT LIKE AN IDIOT FOR NOT UNDERSTANDING THE MM PROPOSITIONS COMPLETELY. YOUR VIDEOS HAVE BEEN A GAME CHANGER!!! GURU PRANAM

[@RazeenMujarrab]

First class of Grad School (MSc in Management - Finance track), my professor says, "Now we all know the seminal work of Miller & Modigliani; so based on that..." I did not know that seminal piece of work. :'( Your eight videos have saved my life. THANK YOU.

[@femiairboy94]

I really appreciate the patience and humility with which you teach. thanks for making this so easy to understand, cheers.

[@entelechy]

still watching in '22. thanks a lot for this, you made me understand the concept in 10x less time than my professor

[@yinglinyu4365]

Your explanations are much easier to be understood!!

[@felisiaac]

hi! i was having a hard time understanding M&M proposition during my finance course then i searched on youtube for explanations and found your video. i wanna say thank you so much for your videos because it helped me A LOT to pass the finance course. keep up with the great work & amazing videos! :)

[@MichaelJones-qo1el]

These 4 videos are incredible, thank you so much for your patience explanations

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[@anastasiazhu723]

Thank you so much these videos! Really saves my life…

[@africanchild5719]

I hope your value is increasing year on year... You're really good... My study guide doesn't capture the explanation like you do. Thank you

[@asaadalvi2753]

Amazing videos, really helped with understanding MM Theorem like never before

[@AllThingsMathematics]

Happy to hear that :)

[@KasunHerath]

I think why I had not found your beautiful teachings earlier. Thank you. You are a great teacher. Good luck !

[@zitalui]

Thank you so much, after watching your videos. I finally understand the concepts for my exam.

[@deus3404]

You are an amazing teacher

[@dekster6]

Thanks, great explanations! All four.

[@AllThingsMathematics]

Glad it was helpful! :)

[@kellyzhong1713]

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[@chin-jinnie]

Great explanation, easy to follow

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[@ujjwalsaini1543]

Yup , specially 1 day before Fin Man at 1.5x :D

[@jiajieguo4563]

Just finished part 1 to 4, thank you so much!! Hope to see M&M with corporate taxes.

[@MingSShuen]

You are awesome. Thanks so much!

[@maggiel8826]

Will you make videos for M&M with taxes? I love your explanations!!! Thanks a lot!

[@Masteridea101]

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Coolest Teacher Ever 😎

[@pnpark]

helping for my MBA corporate finance course!

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Same haha

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Super helpful! Thanks a lot!

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amazing !

[@surajsuji1110]

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Professional, thank you

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Well explained..

[@monavi13]

Thank you for saving my life!

[@muhsinabdurrahman9149]

Thank you, it was really helpful

[@aryakhanna117]

Thanks, very easy to follow

[@giuliaguerra8215]

Your videos amazing!!! There's only thing I didn't get: why return on debt is costant if we increase D/E?

[@stevewalker1837]

thanks for saved my exam \

[@maricr94]

GREAT explanation!!! keep it up!

[@lukasbernatik1277]

Thanks a lot! Super helpful videos!

[@ninand4916]

Thank You

[@KarryGao9]

Great lessons, thanks a lot

[@sharonjerop7554]

Nice

[@arno906]

Thank you for this helpul video !

[@pnpark]

such a good teacher does he have a phD or something ridiculously high like that?

[@inescarlos4056]

Amazing! Thank you

[@Basta11]

What happens to the WACC and Asset value in a 100% debt firm? Acccording to MM1, it should be the same. But applying the WACC formula, the Re portion is zeroed, and the WACC = Rd, which would be lower than Ru. I was always confused by this.

[@martingottschaldt383]

You are right. For high levels of gearing rd actually moves up to WACC. Most books don’t show this and it is not mentioned here. You can check Berk and DeMarzo, they show the actual curves, and you will see that they are curves when plotted over D/V, not D/E. I like D/V more as it directly relates to gearing in %.

[@charlottewong6461]

Hi really sorry for asking why cost of debt is always constant it is mentioned is which video?

[@joeljose1737]

thanks a lot!!!!

[@rinor1870]

How am i supposed interpret the Wacc formula if we have 100% debt... then we'd have Rd=/ Wacc?

[@reservoirdograyh4n]

Is cost of equity the same as RETURN ON EQUITY?? Isnt return on equity a measure of a firms ability to turn investments into profits?

[@aartijarwani]

I was wondering if Ru=Re then if Re is rising, how can Ru=WACC and remain unchanged as WACC?

[@maeliank8796]

my man patrick

[@nabilelkassabany7065]

thank you much, Do you any of any resource to download excel templates for calculations of some of these variables?

[@sebastiannordstern9103]

Why does rd stay constant?

[@adamstyles4818]

how do you calculate RA?

[@ahmedlam7215]

Thank you!

[@jessicazhou8076]

I wonder unlevered means no debt. But if no equity, is it still unlevered ?

[@perlechenchen9570]

leverage refers to financing an investment with borrowed/debt capital. If we have a firm with equity only, then there is no debt, no leverage, the firm is unlevered so to say. For the case with no equity the firm is 100% financed with debt and levered

[@justry_right9766]

Why the return on debt is constanst tho?

[@FinancialScoop]

Because you have to pay the same interest amount to the bank irrespective of your earning. either you earn more that doesn't mean you will pay more interest to the bank and vice versa.. Correct me If I am wrong.

[@leonardopoveromo8611]

BOMBER

[@maricelagutierrez816]

what chapter is this?

[@劉時傑-t7f]

thanks for the video, but a quick question, what would ra be with 100% debt? supposedly ra would equal to rd with 100% debt and no equity, but then rd would not equate to ru, would that be contradiction?

[@luochengxi9189]

justin bieber