• Corpus ID: 19024037

The Cost of Capital, Corporation Finance and the Theory of Investment

@article{Miller1958TheCO,
  title={The Cost of Capital, Corporation Finance and the Theory of Investment},
  author={Merton H. Miller},
  journal={The American Economic Review},
  year={1958},
  volume={48},
  pages={261-297}
}
The potential advantages of the market-value approach have long been appreciated; yet analytical results have been meager. What appears to be keeping this line of development from achieving its promise is largely the lack of an adequate theory of the effect of financial structure on market valuations, and of how these effects can be inferred from objective market data. It is with the development of such a theory and of its implications for the cost-of-capital problem that we shall be concerned… 

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ALTLEN, "Does Going into Debt Lower the 'Cost of Capital'?," A nalysts Jour
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