GENERALIZATION OF THE MODIGLIANI-MILLER THEORY: MYTH AND REALITY
Starting from the contribution made by the Nobel laureates Merton Miller and Franco Modigliani, the issue of interdependences among the capital structure,the cost of capital and firm value and their implementation in the financial models for practical needs has been a topical field of scientific res...
| Main Authors: | , |
|---|---|
| Format: | Article |
| Language: | Russian |
| Published: |
Government of the Russian Federation, Financial University
2017-10-01
|
| Series: | Финансы: теория и практика |
| Subjects: | |
| Online Access: | https://financetp.fa.ru/jour/article/view/59 |
| _version_ | 1797878821857263616 |
|---|---|
| author | R. G. Ibragimov G. A. Panferov |
| author_facet | R. G. Ibragimov G. A. Panferov |
| author_sort | R. G. Ibragimov |
| collection | DOAJ |
| description | Starting from the contribution made by the Nobel laureates Merton Miller and Franco Modigliani, the issue of interdependences among the capital structure,the cost of capital and firm value and their implementation in the financial models for practical needs has been a topical field of scientific research. During decades, since the breakthrough paper the cost of capital, corporate finance and the theory of investment went to press in 1958, a wide spectrum of publications appeared in leading journals worldwide generalizing the basic model of Modigliani-Miller by relaxing restrictions in initial assumptions.The paper investigates the «The Brusov-Filatova-Orekhova theory» which completely disregards all the findings of previous research generallyrecognized byprofessionals in the field,and claims no less than to generalize the theory of Modigliani - Miller «in a case of companies with an arbitrary lifetime», and to be the first to find «the solution of the problem of weighted average cost of capital, WACC, for the finite valuation horizon». We show that the basic assumptions of «The Brusov-Filatova-Orekhova theory» are insolvent, the theory itself is erroneous and, therefore, all derived conclusions and generalizations are scientifically irrelevant and of no practical significance. |
| first_indexed | 2024-04-10T02:39:18Z |
| format | Article |
| id | doaj.art-ac01e8a1328b4961a1e84de104afef32 |
| institution | Directory Open Access Journal |
| issn | 2587-5671 2587-7089 |
| language | Russian |
| last_indexed | 2024-04-10T02:39:18Z |
| publishDate | 2017-10-01 |
| publisher | Government of the Russian Federation, Financial University |
| record_format | Article |
| series | Финансы: теория и практика |
| spelling | doaj.art-ac01e8a1328b4961a1e84de104afef322023-03-13T07:49:25ZrusGovernment of the Russian Federation, Financial UniversityФинансы: теория и практика2587-56712587-70892017-10-010311412210.26794/2587-5671-2014-0-3-114-12296GENERALIZATION OF THE MODIGLIANI-MILLER THEORY: MYTH AND REALITYR. G. Ibragimov0G. A. Panferov1Высшая школа финансов и менеджмента (ВШФМ) РАНХиГСФинансовый университетStarting from the contribution made by the Nobel laureates Merton Miller and Franco Modigliani, the issue of interdependences among the capital structure,the cost of capital and firm value and their implementation in the financial models for practical needs has been a topical field of scientific research. During decades, since the breakthrough paper the cost of capital, corporate finance and the theory of investment went to press in 1958, a wide spectrum of publications appeared in leading journals worldwide generalizing the basic model of Modigliani-Miller by relaxing restrictions in initial assumptions.The paper investigates the «The Brusov-Filatova-Orekhova theory» which completely disregards all the findings of previous research generallyrecognized byprofessionals in the field,and claims no less than to generalize the theory of Modigliani - Miller «in a case of companies with an arbitrary lifetime», and to be the first to find «the solution of the problem of weighted average cost of capital, WACC, for the finite valuation horizon». We show that the basic assumptions of «The Brusov-Filatova-Orekhova theory» are insolvent, the theory itself is erroneous and, therefore, all derived conclusions and generalizations are scientifically irrelevant and of no practical significance.https://financetp.fa.ru/jour/article/view/59структура капиталастоимость капиталасредневзвешенная стоимость капитала - waccдивидендная политикатеория модильяни-миллера |
| spellingShingle | R. G. Ibragimov G. A. Panferov GENERALIZATION OF THE MODIGLIANI-MILLER THEORY: MYTH AND REALITY Финансы: теория и практика структура капитала стоимость капитала средневзвешенная стоимость капитала - wacc дивидендная политика теория модильяни-миллера |
| title | GENERALIZATION OF THE MODIGLIANI-MILLER THEORY: MYTH AND REALITY |
| title_full | GENERALIZATION OF THE MODIGLIANI-MILLER THEORY: MYTH AND REALITY |
| title_fullStr | GENERALIZATION OF THE MODIGLIANI-MILLER THEORY: MYTH AND REALITY |
| title_full_unstemmed | GENERALIZATION OF THE MODIGLIANI-MILLER THEORY: MYTH AND REALITY |
| title_short | GENERALIZATION OF THE MODIGLIANI-MILLER THEORY: MYTH AND REALITY |
| title_sort | generalization of the modigliani miller theory myth and reality |
| topic | структура капитала стоимость капитала средневзвешенная стоимость капитала - wacc дивидендная политика теория модильяни-миллера |
| url | https://financetp.fa.ru/jour/article/view/59 |
| work_keys_str_mv | AT rgibragimov generalizationofthemodiglianimillertheorymythandreality AT gapanferov generalizationofthemodiglianimillertheorymythandreality |