• Modigliani and Miller
    ESSAY ON : CRITISM OF MODIGLIANI AND MILLER HYPOTHESIS For a firm, the most significant everlasting theme is getting the maximum profit is by minimising cost and taking the least risk. Capital Structure refers to the mix of sources from where the long term funds required in a business may be rai
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  • Critique on Mm Theory
    American economist Franco Modigliani and Merton H. Miller published The Cost of Capital, Corporation Finance and the Theory of Investment (Hereafter MM theory); a paper presented the initial MM theory, which states that under a certain market price process, in the absence of taxes, bankruptcy costs,
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  • Mm Theory and Jm Theory of Capital Structure
    MM with capital structure In 1958, Modigliani and Merton Miller in their classical paper “The Cost of Capital, Corporation Finance and the Theory of Investment”, talked something about capital structure as follow: Consider any company j and let Xj stand as before for the expected return on th
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