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Ryan Mee, CEO of Fulcrum Metals, reviews FY23 and progress on the Gold Tailings Hub in Canada
Ryan Mee, CEO of Fulcrum Metals, reviews FY23 and progress on the Gold Tailings Hub in CanadaView Video
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  5. Modigliani & Millers (MM) Capital Structure Theories

Modigliani & Millers (MM) Capital Structure Theories

Definition of 'Modigliani & Millers (MM) Capital Structure Theories'

(i) MM-no tax, which proves that no optimal capital structure exists, and that the WACC is invariant to debt / equity ratio.
(ii) MM-with tax which suggests that the tax shield should be exploited up to the point of almost 100 per cent debt financing.

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Related Terms

Traditional Theory of Capital StructureIrrelevancy of the Dividend Proposition - by Modigliani and MillerCapital GearingMarginal Cost of CapitalExpansion CapitalCapital StructureCapitalisation IssueOptimal Capital StructureStructureEconomic Value AddedBig BangExpectations Hypothesis of the Term Structure of Interest Rates (Yield Curve)Financial RiskGeneral PartnersLeveraged RecapitalisationsLeveraged RecapitalizationsLiquidity-Preference Hypothesis of the Term Structure of Interest RatesMarket Segementation Hypothesis of the Term Structure of Interest RatesMarket StructureMatching Principle

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