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What are the principles presented by Modigliani and Miller and explain your agreement or disagreement.

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Finance

What are the principles presented by Modigliani and Miller andexplain your agreement or disagreement.

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Modigliani Miller approach The principle behind the Modigliani Miller approach to the capital theory was devised during the 1950s and this approach advocates the capital structure irrelevance theory This theory states that the valuation of the firm is not relevant to the capital structure of the company The fundamentals of the MillerModigliani approach resembles the theory relevant to the Net Operating Income Approach This theory states that a high leverage or a lower debt component in the financing mix does not carry any bearing on the value of the firm This theory also states that market value of a firm is greatly affected by its operating income in    See Answer
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What are the principles presented by Modigliani and Miller andexplain your agreement or disagreement.

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