MODIGLIANI - MILLER THEOREM
It forms the basis of modern thinking on capital structure. Under a certain market price process , in the absence of taxes, bankruptcy costs , agency costs & assymetric information and in an efficient market, the value of the firm is unaffected by how that firm is financed. It does not matter whether the capital is raised by selling debt or issuing stocks. It doesn’t matter what is the dividend policy of the firm. The full article is available on https://upsconline.com/modigliani-miller-theorem-homemade-leverage/
