Modigliani-Miller Theorem

Modigliani-Miller Theorem: Fundamental Corporate Finance Theory
The Modigliani-Miller theorem asserts that in a perfect capital market, the value of a firm is independent of its financing methods. This theorem lays the foundation for modern corporate finance by arguing that leverage and dividend policy do not impact a firm’s value in ideal conditions.
Dividend Irrelevance Theory: Understanding Its Impact on Stock Prices and Investment Strategies
A detailed exploration of the Dividend Irrelevance Theory, discussing its definition, implications on stock prices, and its significance in shaping investment strategies. Includes historical context, key examples, and related terms.

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