Irrelevance Result

0.01 sec.

Irrelevance result

The Modigliani and Miller theorem that a firm's capital structure is irrelevant to the firm's value.

Irrelevance Result

An economic theory stating that the performance of a firm's investments has no relation to how they are financed, whether stock, debt, or cash. The irrelevance result postulates that the quality of the investment, rather than the financing behind it, is the relevant question for a firm. It is part of the Modigliani-Miller theorem. See also: Fisher's Separation Theorem.

Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit the webmaster's page for free fun content.

?Page tools

Printer friendly
Cite / link

Feedback
Add definition

Mentioned in	?		References in periodicals archive	?		Financial browser	?		Full browser	?
Fisher's Separation Theorem Portfolio Separation Theorem Separation Theorem			The same arbitrage rationale is used to show that the possibility of constructing homemade dividends on the personal account may be fulfilled by firms, which ensures the same irrelevance result. Merton H. Miller: our Socrates by Chichti, Jamel E.; Bellalah, Mondher; Mansour, Walid / International Journal of Business It is ironic that this leverage irrelevance result is what many may want to remember from Merton Miller. Merton Miller and Modern Finance by Stulz, Rene M. / Financial Management			IQD IR IRA IRA Adoption Agreement and Plan Document IRA Rollover IRA Transfer IRA/Keogh accounts Iraimbilanja Iranian Rial Iraqi Dinar IRB Iridium Irish Budget 2010 Irish Pound Irish Stock Exchange Iron Butterfly Iron Condor ironclad agreement IRR Irrational call option Irrational Exuberance Irredeemable Irredeemable Bond irregular coupon Irregularity Irrelevance Result Irrelevant Costs irrevocable Irrevocable Beneficiary Irrevocable Corporate Purchase Order Irrevocable Letter of Credit Irrevocable Trust IRS IRS Restructuring and Reform Act of 1998 Irtihan Irving Fisher IS ISDA ISE Isencao de imposto iShares Ishtirak ISJ ISK Islamic American Relief Agency Islamic Bank Islamic Banking Islamic Development Bank Islamic Finance Islamic Loan Islamic Mortgage			irregularity irregularity irregularity irregularly irregularly irregularly irregularly Irregulars Irregulars Irregulars Irregulars Irregulate Irregulous Irrejectable Irrelapsable Irrelate irrelated Irrelation Irrelation irrelative irrelative Irrelative chords Irrelative repetition irrelatively irrelatively Irrelavance Irrelavancy Irrelavant irrelevance irrelevance Irrelevance Result irrelevances irrelevances irrelevancies irrelevancies irrelevancy irrelevancy irrelevant irrelevant irrelevant irrelevant Irrelevant conclusion Irrelevant Cost Irrelevant Costs Irrelevant evidence Irrelevant Question Irrelevant thesis irrelevantly irrelevantly Irrelievable irreligion irreligion irreligionist Irreligiosity irreligious irreligious irreligiously irreligiously irreligiousness irreligiousness irremeable

Financial Dictionary

Free Tools:	For surfers: Free toolbar & extensions \| Word of the Day \| Help For webmasters: Free content \| Linking \| Lookup box \| Double-click lookup

Disclaimer
All content on this website, including dictionary, thesaurus, literature, geography, and other reference data is for informational purposes only. This information should not be considered complete, up to date, and is not intended to be used in place of a visit, consultation, or advice of a legal, medical, or any other professional.