Modigliani-Miller theorem with taxes
GPTKB entity
Statements (23)
| Predicate | Object |
|---|---|
| gptkbp:instanceOf |
gptkb:financial_technology
|
| gptkbp:appliesTo |
corporate finance
|
| gptkbp:assumes |
perfect capital markets except for corporate taxes
|
| gptkbp:basisFor |
capital structure research
|
| gptkbp:contrastsWith |
Modigliani-Miller theorem without taxes
|
| gptkbp:developedBy |
gptkb:Merton_Miller
gptkb:Franco_Modigliani |
| https://www.w3.org/2000/01/rdf-schema#label |
Modigliani-Miller theorem with taxes
|
| gptkbp:implies |
optimal capital structure is 100% debt in theory
|
| gptkbp:proposedBy |
corporate value increases with leverage due to tax shield
|
| gptkbp:publicationYear |
1963
|
| gptkbp:publishedIn |
gptkb:American_Economic_Review
|
| gptkbp:relatedTo |
debt financing
equity financing leverage cost of capital corporate taxes firm value tax shield |
| gptkbp:state |
firm value increases with debt due to interest tax deductibility
|
| gptkbp:usedIn |
MBA finance curriculum
|
| gptkbp:bfsParent |
gptkb:Modigliani-Miller_theorem
|
| gptkbp:bfsLayer |
7
|