Home Videos Aswath Damodaran – Session 17 (MBA): The MM Theorem & Cost of capital approach

Aswath Damodaran – Session 17 (MBA): The MM Theorem & Cost of capital approach

Advertisement Disclosure: When you purchase through our sponsored links, we may earn a commission from our partners. By using this website you agree to our T&Cs.

Aswath Damodaran – Session 17 (MBA): The MM Theorem & Cost of capital approach

Published on Apr 6, 2016

In this session, I look at the Miller Modigliani theorem through the prism of the debt tradeoff. I then move on to looking at how the cost of capital can be used to optimize the right mix of debt and equity.
Slides:
http://www.stern.nyu.edu/~adamodar/po…
Post class test: http://www.stern.nyu.edu/~adamodar/pd…
Post class test solution: http://www.stern.nyu.edu/~adamodar/pd…

Our Editorial Standards

At ValueWalk, we’re committed to providing accurate, research-backed information. Our editors go above and beyond to ensure our content is trustworthy and transparent.

Editor
Investing

Which Stocks Should You Buy, and Sell, in 2026?

Dave Kovaleski6 months

Also, the 3 sectors that Wall Street analysts are most bullish about. The usual suspects dominated in 2025 as both the Communication Services and Information Technology sectors helped boost the...