Problem regarding the personal savings

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Imagine you plan to buy a flat near Dallas . The flat costs $400,000. You have three options of buying this flat.

Option 1: You pay the entire money from your personal savings.

Option 2: You borrow $100,000 from Chase Bank and you pay the remaining $300,000 from your personal savings.

Option 3: You borrow $300,000 from Chase Bank and you pay the remaining $100,000 from your personal savings.

From the above options which one would you prefer, using the Modigliani's and Miller concept explain the reason for your answer

Reference no: EM131115298

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