2: Franco Modigliani and Merton H. Miller advanced a theory on optimal capital structure of a company (Modigliani and Miller 1958). They (MM) suggested that, in a perfect world with no taxes or bankruptcy cost, capital structure has no effect on the value of a company (Ani 2016). Evaluate as to whether MM theory on capital structure with taxes are valid by considering the concept of Thin Capitalisation as has been recently introduced by the Anti-tax Avoidance regimes for multinational enterprises. Reference: Parrino, R., Kidwell, D., Yong, H. H. A., Morkel-Kinsbury, N., Dempsey, M., and Murray, J, James, J, and Ekanayake, S., (2016), Business Finance, 1st ed., John Willey and Sons, Australia. Modigliani, F, and Millar, M.H. (1958), "The cost of capital, corporation finance, and the theory of investment', American Economic Review, Vol. 48, pp.261-97. Ani, G (2016) "Dividend irrelevance theory" [online] https://www.dividend.com/dividend-education/dividend-irrelevance-theory/ (access on 8 February 2021)