According to MM Proposition I, without taxes,

• the value of a firm is directly related to the use of debt.

• firm valuation is dependent upon shareholders aversion to homemade leverage.

• any one capital structure is just as valuable as any other capital structure for a given firm.

• corporate use of homemade leverage affects the value of the firm to its shareholders.

• the value of an unlevered firm is greater than that of a levered firm.