In October, we presented an educational film about Nobel Prize-winning economists Franco Modigliani and Merton Miller and how they contributed to a better understanding of the value of debt in financial management.

The Modigliani-Miller theorem is one of the fundamental theorems of modern corporate finance. It states that, in a world without taxes, free of transaction costs and under the assumption of efficient markets, the value of economic assets is not affected by the choice of a financing structure.

Professor Jacquet returns here to this theory and continues his reflection beyond the basic principles, bringing the 2nd Modigliani Miller model with new elements around debt management and arriving at the concept of real options.