Using Modigiliani and Miller’s Proposition II, determine the required return on unleveraged equity. Evaluate why violations of the Modigiliani and Miller assumptions of perfect markets require revisions to your c

Please respond to the following:

  • Using Modigiliani and Miller’s Proposition II, determine the required return on unleveraged equity.

  • Evaluate why violations of the Modigiliani and Miller assumptions of perfect markets require revisions to your capital budgeting analysis.