DSCG FINANCE MODIGLIANI ET MILLER PROPOSITION 2

This video analyzes Proposition II of Modigliani & Miller, a key component of the DSCG Finance curriculum. We demonstrate why the cost of equity, kₑ, increases with debt, using the formula: kₑ = k₀ + (k₀ − k_d) × D/E ✅ Definition of variables: k₀, k_d, D/E ✅ Economic intuition and interpretation ✅ Step-by-step numerical application ✅ Connection to Proposition I (firm value) 📚 All solutions and practice questions are available at infomaths.com 🔔 Subscribe so you don't miss any DSCG Finance videos!