0
Quoted from Wikipedia: "The basic theorem states that, in the absence of taxes, bankruptcy costs, and asymmetric information, and in an efficient market, the value of a firm is unaffected by how that firm is financed. It does not matter if the firm's capital is raised by issuing stock or selling debt. It does not matter what the firm's dividend policy is. Therefore, the Modigliani-Miller theorem is also often called the capital structure irrelevance principle."
Add your answer:
Earn +20 pts
When do we reject a hypothesis?
When we've proven that the hypothesis is false !
What is the difference between a hypothesis and a working hypothesis?
The difference is that working hypothesis is that your still working on it but the hypothesis that your not working on it.
What is difference between a hypothesis and a scientific hypothesis?
A scientific hypothesis has to be testable.
What does it mean if a scientist fails to rejects a hypothesis?
the hypothesis has not been proven wrong.
What does the researcher hope to do with the null hypothesis (the opposite of the research hypothesis)?
Be able to reject the null hypothesis and accept the research hypothesis
What are the assumptions of the Modigliani Miller approach?
The Modigliani Miller approach assumes that it does not matter how a business or corporation is financed.
What are the assumptions of the modigliani and miller hypothesis in relation to capital structure?
Modigliani and Miller's capital structure theories assume a society where there are no taxes, no transaction or bankruptcy costs, equal borrowing for companies and investors, equal access to information for companies and investors, and that debt won't effect a company's earnings. This leads people to very critical of their hypothesis since those assumptions are far removed from the real world's actions.
Does capital structure matter for company?
According to Modigliani and Miller, no.... ;)
What has the author Amedeo Modigliani written?
Amedeo Modigliani has written: 'Amedeo Modigliani' 'Amedeo Modigliani, text by Jacques Lipchitz.'
What is Modigliani's full name?
Amedeo Clemente Modigliani.
What was Modigliani's first name?
Amedeo Clemente Modigliani.
Who was modigliani?
Modigliani was a popular artist that studied paintings and sculptures
Was Modigliani married?
Yes. Modigliani was married to Jeanne Hebuterne.
When did Ettore Modigliani die?
Ettore Modigliani died in 1947.
When was Ettore Modigliani born?
Ettore Modigliani was born in 1947.
When did Jeanne Modigliani die?
Jeanne Modigliani died in 1984.
When was Jeanne Modigliani born?
Jeanne Modigliani was born in 1918.
