9. Capital Structure Irrelevance: The Modigliani-Miller Model

  1. H. Kent Baker and
  2. Gerald S. Martin
  1. Sergei V. Cheremushkin

Published Online: 20 DEC 2011

DOI: 10.1002/9781118266250.ch9

Capital Structure and Corporate Financing Decisions: Theory, Evidence, and Practice

Capital Structure and Corporate Financing Decisions: Theory, Evidence, and Practice

How to Cite

Baker, H. K. and Martin, G. S. (2011) Capital Structure Irrelevance: The Modigliani-Miller Model, in Capital Structure and Corporate Financing Decisions: Theory, Evidence, and Practice, John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118266250.ch9

Author Information

  1. Assistant Professor, Mordovian State University

Publication History

  1. Published Online: 20 DEC 2011
  2. Published Print: 18 APR 2011

ISBN Information

Print ISBN: 9780470569528

Online ISBN: 9781118266250

SEARCH

Keywords:

  • capital structure;
  • rational investment;
  • financial policy;
  • value-based management;
  • market imperfection

Summary

This chapter contains sections titled:

  • Introduction

  • Mm Capital Structure Propositions and Their Interpretations

  • The Trade-Off Between Tax Advantages and Bankruptcy Costs

  • Extension of the MM Model

  • Summary and Conclusions

  • Discussion Questions

  • About the Author