The capital structure of a company directly impacts its profitability and ability to continue as a going concern. If a company is over-leveraged and cash flows are insufficient to meet recurring ...

Merton Miller and Franco Modigliani published their theorem in an article, "The Cost of Capital, Corporation Finance and the Theory of Investment," which appeared in the American Economic Review ...

The Modigliani-Miller theorem states that a company’s capital structure doesn’t affect its value in perfect markets. While this theory is one of the foundational theories on capital structure ...

“IRRELEVANCE theory” contains one of the most startling conclusions in economic thought. In two papers, published in 1958 and 1963, Franco Modigliani and Merton Miller argued that a firm's ...