Modigliani and Miller Proposition I

Definition:

A proposition by Modigliani and Miller which states that a firm cannot change the total value of its outstanding securities by changing its capital structure proportions. Also called the irrelevance proposition.

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

Term of the Day

Pre shipment Finance

Short term funding for inventory and production costs associated with manufacturing goods being exported.

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