Subadar et al$.(2007)$ stated in their study regarding factors affecting leverage that $$Modigliani and Miiler$$s $(1958)$ seminal paper on the relationship between firm value and capital structure has fuelled a huge literature ranging from academic theories to practical realities. It is now generally recognized that capital structure or leverage is relevant to firm value.$$

Discuss the Modigliani and Miller$$s first proposition, that firm value should be independent of capital structure, together with its assumptions.