According to researchers Modigliani and Miller, with perfect capital markets, the total value of a firm should not depend on its capital structure.

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According to Modigliani and Miller's proposition, in perfect capital markets, the value of a firm is determined by its cash flows and the risk of its assets, and it would not depend on its capital structure. This is known as the Modigliani-Miller theorem. However, in real-world scenarios where capital markets are imperfect and information is not symmetrical, the value of the firm can be impacted by its capital structure.

According to Researchers Modigliani and Miller, with Perfect Capital Markets