Continued Modigliani and Miller's Analysis(现代资 本结构理论，1958年后) (I)MM without a Corporate Income Tax o Assumptions: No taxes √No transaction costs Individuals and corporations borrow at same rate o Results: Proposition I:VL=Vu(=EBIT/Ka=EBIT/Kcu) /PropositionⅡ：keko+B/E(keu-ka) 渊补楂价贸多方号 YO年NEB证事00003Continued – Modigliani and Miller’s Analysis (现代资 本结构理论，1958年后) （I）MM without a Corporate Income Tax oAssumptions: 9No taxes 9No transaction costs 9Individuals and corporations borrow at same rate oResults: 9Proposition I: VL=VU(=EBIT/ka=EBIT/keU) 9Proposition II: keL=keU+B/E(keU-kd)