The cost of capital corporation finance and the theory of investment 1958

2020-02-22 15:49

CONCLUSION Modigliani and Miller contributed in finance economics with their article The cost of capital, corporation finance and the theory of investment in 1958. As for the contribution given from them, which was also highly evaluated by many economists, Modigliani and Miller received the Nobel Prize for Economics ( ).The ModiglianiMiller theorem (of Franco Modigliani, Merton Miller) is an influential element of economic theory; it forms the basis for modern thinking on capital structure. The basic theorem states that in the absence of taxes, bankruptcy costs, agency costs, and asymmetric information, and in an efficient market, the value of a firm is unaffected by how that firm is financed. the cost of capital corporation finance and the theory of investment 1958

Modigliani, F. and Miller, M. H. (1958) The Cost of Capital, Corporation Finance and the Theory of Investment. American Economic Review, 48, . has been cited by the following article: TITLE: An Empirical Application of the TradeOff Model for Companies in the Dow Jones Industrial Average

American Economic Association The Cost of Capital, Corporation Finance and the Theory of Investment titleAmerican Economic Association The Cost of Capital, Corporation Finance and the Theory of Investment, authorFranco Modigliani and Merton H. Miller, year1958 The proof of Proposition I in the work of Modigliani and Miller (MM) (. Modigliani, F. and Miller, M. H. 1958. The cost of capital, corporation finance, and the theory of investment.the cost of capital corporation finance and the theory of investment 1958 The American economic Revlew VOLUME XLVIII JUNE 1958 NUMBER THREE THE COST OF CAPITAL, CORPORATION FINANCE AND THE THEORY OF INVESTMIENT By FRANCO MODIGLIAN1 AND MERTON H. MILLER What is the cost of capital to a firm in a world in which funds are