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.

He used China as an example because in the 1980s, it had grown faster than any other country and had increased its savings substantially. The Modigliani-Miller Theorem: How debt and equity financing ...