Modigliani-Miller theorem: In perfect markets, capital structure doesn't affect firm value
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the Modigliani-Miller theorem says
Modigliani-Miller theorem: In perfect markets, capital structure doesn't affect firm value
Related concepts
Quantity theory of money
MV = PY equation
Coase theorem
Coase theorem: With zero transaction costs, parties negotiate efficient outcomes
Supply and demand
Market-clearing price where quantity supplied equals quantity demanded
Efficient-market hypothesis
Prices reflect all available information
Fama–French three-factor model
Fama-French model adds size and value factors to CAPM
Value theory
Graham emphasizes intrinsic value as a company's true worth based on fundamentals
Educational content, not financial advice.
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