Question
In perfect and complete markets Miller and Modigliani (1958) show that there is no advantage to debt vs equity in the capital structure. That is,
In perfect and complete markets Miller and Modigliani (1958) show that there is no advantage to debt vs equity in the capital structure. That is, the value of the firm is determined by its income from operations, not from its capital structure.
What do Miller and Modigliani mean by perfect and complete markets?
How did their argument change with the introduction of corporate taxes into their model?
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Smith and Roberson Business Law
Authors: Richard A. Mann, Barry S. Roberts
15th Edition
1285141903, 1285141903, 9781285141909, 978-0538473637
