Discussion Questions –
1. Research and explain the Modigliani Miller theorems and how they can be applied to capital structure in an organisation. Short Essay (approximately 1,000 words) 15 marks
2. The board of directors of an Australian company, Apple Ltd. is unlisted have asked you as the Finance Director to calculate the company’s cost of capital. The. Using the balance sheet and other information provided below calculate the company’s Weighted Average Cost of capital (1,000 words)Prepare a board report with the analysis of the investment proposals. You must include your recommendation for one of the investments only and the basis for your recommendation.
1. Research and explain the Modigliani Miller theorems and how they can be applied to capital structure in an organisation. Short Essay (approximately 1,000 words) 15 marks
2. The board of directors of an Australian company, Apple Ltd. is unlisted have asked you as the Finance Director to calculate the company’s cost of capital. The. Using the balance sheet and other information provided below calculate the company’s Weighted Average Cost of capital (1,000 words)Prepare a board report with the analysis of the investment proposals. You must include your recommendation for one of the investments only and the basis for your recommendation.
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