- Sir in mm model 1963
V of lev firm = Vu + tDBut Vu is calculated using discount rate kc* and add tax advantage
But ke will rise at lower rate overall kc will fall so value will go upward
In short i want to say that under mm model 1963 value of firm is not true ..it should be more than the value that we have calculated under mm model 1963
Sonali guptaBeginner
Corporate structure
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