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Explain propositions of the modiglianir theorem in a world

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Russell Risklove plans to finance the acquisition of AdTec with additional debt. However, Russell Risklove is a bit uncertain as one of the major shareholders of Denkel KGaA criticized this idea at the last Denkel annual shareholders meeting. He asked him whether he has ever heard about Modigliani/Miller and their propositions.

Problem 1: Briefly explain propositions of the Modigliani/Miller theorem in a world without taxes in your own words. What are the implications of the M&M-Theorem?

Reference no: EM132841142

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