The Modigilian-Miller (M&M) Theorem states that:

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The Modigilian-Miller (M&M) Theorem states that in an efficient market without taxes and bankruptcy costs, the value of a firm does not depend upon the firm's capital structure. This is because investors can create any desired capital structure by modifying their personal leverage, and the cost of equity increases with additional leverage to offset any tax advantage gained from debt financing. Therefore, the only relevant factor in determining the value of a firm is its underlying cash flows.

The Modigilian-Miller (M&M) Theorem States That