To the capital structure choice: Miller and Modigliani model

摘要

Over the last 50 years several theories of capital structure have been formulated, their authors are mainly economists from Anglo-Saxon countries. Theories were extended to the whole world from these countries, where they were further elaborated, tested, simplified and adapted to correspondent with the particular context of national economies, industries and specific companies. The main problem associated with their practical application is that the validity of the various theories is not universal. These theories and their outcomes are valid only under certain conditions and with certain limitations. The conflict arises also between the outcomes and recommendations of the various theories that are often mutually exclusive. In this work we analyse the most famous theoretical model of the capital structure, the model of M.H. Miller and F. Modigliani.