Re:Tesla Third Quarter 2018 Update [pdf]
by soVeryTired on Thursday October 25, 2018 @07:08AM
(#18299993)
But it's already painfully obvious that one or more of the assumptions is violated. That should only be surprising if you've spent years being indoctrinated by academic finance or economics.
"These results might seem irrelevant (after all, none of the conditions are met in the real world), but the theorem is still taught and studied because it tells something very important. That is, capital structure matters precisely because one or more of these assumptions is violated."
[0] https://en.wikipedia.org/wiki/Modigliani–Miller_theorem