Franco Modigliani contributed to which of these theories?
Plate Tectonics
Modigliani-Miller Theorem
Quantum Mechanics
Relativity Theory
Answer
The Modigliani-Miller Theorem states that the value of a firm is unaffected by its capital structure, that is, its mix of debt and equity. This is because investors are indifferent between debt and equity, and the firm can use its capital structure to its advantage to minimize its cost of capital.
Mastermind of Modern Economics: The Franco Modigliani Quiz
More Questions
Which school was Modigliani affiliated with as a professor?
Modigliani's theories have greatly influenced which area of economics?
What did Modigliani's life-cycle hypothesis focus on?
Modigliani’s research in economics focused on which aspect of financial markets?
In what year did Franco Modigliani pass away?
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