Question

M&m's proposition i states that a company's value is independent of its capital structure.

Answer 1

The Modigliani-Miller theorem (M&M) states that the market value of a company is calculated using its earning power and the risk of its underlying assets and is independent of the way it finances investments or distributes dividends.

Answer 2

Explanation:

minus proportion of the states that accompanies value is independent of its capital structure