Modigliani and Miller Proposition I
A proposition by Modigliani and Miller which states that a firm cannot change the total value of its outstanding securities by changing its capital structure proportions. Also called the irrelevance proposition. |
Similar financial terms
Modigliani and Miller Proposition IIA proposition by Modigliani and Miller which states that the cost of equity is a linear function of the firm's debt/equity-ratio.
