Modigliani Miller Theorem - Capital Stucture

Abstract
Since business has been in existence, management has been placed in the dilemma of increasing the total value of their company and in determining what way this is measured. The question manager's face is there a need for debt financing and/or will there be a profit, if so, what are the pros and cons for these decisions? The type of company policy in regards to payout or the financial decisions would not necessarily matter in a perfect market, and a company cannot simply rearrange the total value of their securities by filtering their cash into different sectors of the company.…