Statements (30)
| Predicate | Object |
|---|---|
| gptkbp:instanceOf |
gptkb:financial_technology
|
| gptkbp:assumes |
perfect information
no taxes no transaction costs no bankruptcy costs |
| gptkbp:field |
corporate finance
|
| gptkbp:fullName |
gptkb:Modigliani–Miller_theorem
|
| gptkbp:hasProposition |
Proposition I
Proposition II |
| https://www.w3.org/2000/01/rdf-schema#label |
M&M theorem
|
| gptkbp:implies |
capital structure irrelevance principle
|
| gptkbp:influenced |
modern corporate finance theory
|
| gptkbp:namedAfter |
gptkb:Merton_Miller
gptkb:Franco_Modigliani |
| gptkbp:NobelPrizeConnection |
Franco Modigliani Nobel Prize in Economics 1985
Merton Miller Nobel Prize in Economics 1990 |
| gptkbp:proposedBy |
gptkb:Merton_Miller
gptkb:Franco_Modigliani |
| gptkbp:Proposition_I |
Firm value is independent of capital structure.
|
| gptkbp:Proposition_II |
Cost of equity increases linearly with leverage.
|
| gptkbp:publishedIn |
gptkb:American_Economic_Review
|
| gptkbp:relatedConcept |
dividend policy
leverage firm valuation arbitrage cost of capital |
| gptkbp:sentence |
The value of a firm is unaffected by its capital structure in perfect markets.
|
| gptkbp:yearProposed |
1958
|
| gptkbp:bfsParent |
gptkb:Modigliani-Miller_theorem
|
| gptkbp:bfsLayer |
7
|