Modigliani and Miller Capital Structure Theory: Some Clarifying Comments

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Abstract

Thirty three years after the publication of the capital structure theory paper by Modigliani and Miller (M&M), some interpretations of the implications are still fuzzy and unclear. This note examines extreme values of the main parameters which the theory establishes, and offers corrections to some of the comments and conclusions which still appear in leading textbooks of Finance.
Original languageEnglish
Pages (from-to)81-91
JournalJournal for Studies in Economics and Econometrics
Volume15
Issue number3
DOIs
StatePublished - 1991

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