##  [Modigliani-Miller Theorem](/index.php/modigliani-miller-theorem) 

  ##  [Modigliani-Miller Theorem](https://social.quantumdictionary.io/modigliani-miller-theorem-0) 

  

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**Social Sciences Dictionary**

 







 

 

 

 



 

 

 

 

Definition

A finance theorem stating that, under perfect capital‑market assumptions (no taxes, bankruptcy costs, transaction costs, asymmetric information, or investor heterogeneity) and given fixed real investment policy, a firm's market value is invariant to its choice of capital structure (the mix of debt and equity).