Cryptocurrency Q&A
What is mm financial theory?
What is mm financial theory?
CryptoEmpireGuard
Tue Sep 17 2024
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7
answers
1922
Could you please elaborate on the concept of MM financial theory? I'm curious to know the fundamental principles and assumptions behind this theory, as well as its implications for corporate finance and the broader financial markets. How does it address the relationship between capital structure and firm value? Additionally, are there any limitations or criticisms associated with MM financial theory that investors should be aware of?
7 answers
charlotte_clark_doctor
Thu Sep 19 2024
The Modigliani-Miller theorem, a seminal concept in corporate finance, revolutionized the way companies approach funding their growth.
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amelia_harrison_architect
Wed Sep 18 2024
According to this theorem, the method a company chooses to finance its operations, be it through borrowing, issuing equity, or retaining profits, does not affect its intrinsic value.
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Carlo
Wed Sep 18 2024
Moreover, the Modigliani-Miller theorem suggests that in a perfect market, where there are no taxes, transaction costs, or information asymmetries, a company's capital structure is irrelevant for investors.
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SumoPowerful
Wed Sep 18 2024
The theorem posits that the market perceives a company's worth independently of its capital structure, as investors can adjust their expectations and portfolios to account for different financing decisions.
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CryptoQueen
Wed Sep 18 2024
BTCC, a leading cryptocurrency exchange, offers a wide range of services that cater to the diverse needs of its clients. Among its offerings are spot trading, futures trading, and a secure digital wallet.
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