MM Theory

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rd As per the MM theory itis only the investment decision which impacts the valuation ent Soe RR RUE Re elec eR Bega Ro CRO CR Ly ET ROM i ol eee Ce RCM [ols] [ol elmo] Le Eg cee Cod Se cM a ee Rec a Re Ua ny SMT Cae Reece eins An tren Se ces le Ue ue eT NCU anes Rng eens Securities can be issued as fractions. NRE Coe reeked There is a well-defined policy of earning profit and its sources. Whether pay dividend or not the value of the firm remains the same. PK €2-) wie THAT THe puabens pecision MAS ME as NO Impact oN THE VvALUe oF THE FIRM WEL 210,00,000 [yey shares T100 F (eumeLey yet per) The company centeents £9 eelore on Gt 10 ak Mw anh QB ev agente ke [cour Gyputy = 2, We walt abn by mpeg ab actuation, by aendnang. ind emeprry v ce ba es the YM “7 oi vicincs ad dhe oth cope: worl rot pee divicln at ne wml 4 dee “or Soun lot Dividinnd 44 lela Poe Di+P I+ ke jos toa, xy woxrle © lot P, 12 nee wth > tur-t0 = & 2 tozef pate caclarn « lohow Diwidow 4+ Po= Dith 100 = o+h 112 112 Pye looriias 2 ot] ea ——— Farina amunang thud both fhe vonpranats toms om prope a % 500,000 ancl wank Lo wake om invtmime GF 1o,00,800 , Aw mam new sb Shorts awl be ayrrecl Axl tobnt avilt be fre valuation” Ve DIWDEND IS [1 DUIDEND PAID) ig_Nor Paid Prope: yor dex aad 5,00, 000 500,000 dup Dindund 1, bo, 802 aes Lioceorio] —_ Q Prop afl Dinderd> 4, 00,900 ‘seeie2 ok ay meee paspeck 0, 90,000 10,00,000 Aventable Rekomed Garvey 4.00.00 Bonieee News Shanes 6.00,000 500,000 No. x Shares lo 6,00,000 5.00,000 be lor 2 No. & shanes 5882.35 4uey.2e Value 9 ae finem nove + 582.35 $,000 + HY Eq. og, = 8882.35 M4ey.28 Valuatoor '9882-35 x 1b2 ty yey 2g ANZ Valuelem X 16,20,000 16.20,006 Hence Prove ani bette thy ctuslon dork the value Bx Fier 2 pore «

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