This notice undermined an interactive presentation of the Modigliani-Miller theory of the effect of debt tax shields to the value of the company. Students must calculate (1) the effect of hypothetical changes in the capital structure on corporate value, and (2) the impact of a large recapitalization on the share price of Koppers Company with a number of worksheets incomplete. After completing the worksheets, students compare results among the problems.

This notice undermined an interactive presentation of the Modigliani-Miller theory of the effect of debt tax shields to the value of the company. Students must calculate (1) the effect of hypothetical changes in the capital structure on corporate value, and (2) the impact of a large recapitalization on the share price of Koppers Company with a number of worksheets incomplete. After completing the worksheets, students compare results among the problems.
This is a Darden case study.
«Hide

from
Robert F. Bruner,
Sean Carr
Source: Darden School of Business
6 pages.
Release Date: 28, March 1991. Prod #: UV0070-PDF-ENG
An Introduction to Debt Policy and Value (V. 2.0) HBR case solution