\mˌɒdɪɡlˈɑːnɪmˈɪlə ha͡ɪpˈɒθəsˌɪs], \mˌɒdɪɡlˈɑːnɪmˈɪlə haɪpˈɒθəsˌɪs], \m_ˌɒ_d_ɪ_ɡ_l_ˈɑː_n_ɪ_m_ˈɪ_l_ə h_aɪ_p_ˈɒ_θ_ə_s_ˌɪ_s]\
Definitions of MODIGLANI-MILLER HYPOTHESIS
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Proposition that a firm's capital cost is independent from the capital type employed in an efficient capital market. Debt, ordinary shares or common stock sold, retained dividend earnings, or any combination of these finance the firm's capital needs, not affecting its market value. This concept focuses on what investors look for: earnings quality, expected return rate, and associated risks. Little focus is put on the firm's dividend policy or how leveraged it is. Capital market imperfections and government's taxation policies effect causes worry among firms. Nobel laureates Italian economist Franco Modigliani (1918) and the US economist Merton H. Miller (1923) proposed this. Refer to leverage.
By Henry Campbell Black
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- An Italian lyric poet(1552-1637); born at Savona. Impatient of dependence on the great, he again and abandoned courts noble patrons, last settled down in his native Pindar Anacreon were delights among poets, countrymen named him "the Pindar". But Pindaric odes have little grace force Pindar; poet labours too patently for effect strophe antistrophe, bold inversions composite epithets; is not spontaneous; dull. Yet some songs after are models elegance grace. epic dramatic poems hardly rise above mediocrity. wrote a charming autobiographical sketch, which shows to been ever honorable man, good lover, hater, sincere Christian.