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Level 19
· ◆◆◆◆ · ~13 min
Modigliani–Miller Propositions
Modigliani–Miller Propositions
"The most famous result in corporate finance: in a perfect market, how you slice the pie doesn't change its size. Capital structure is irrelevant — until you break an assumption."
MM Proposition I: value irrelevanceMM Proposition II: cost of equity & leveragewhy the WACC stays constantthe perfect-market assumptions
A short lesson, then a quiz. ❤️×3 — a wrong answer costs a heart; finish with at least one left and the level is yours. Lose all three and you'll have to try again. Replay any time — XP and cleared levels are never lost.