Definition of 'Modigliani & Millers (MM) Capital Structure Theories' (i) MM-no tax, which proves that no optimal capital structure exists, and that the WACC is invariant to debt / equity ratio.

The Modigliani-Miller Theorem: How debt and equity financing affects a ... Modigliani defined conflicts that have remained after his death and with his rational expectation theory, he countered the ...