Editing Modigliani–Miller theorem (section)

==Historical background==
Miller and Modigliani derived and published their theorem when they were both professors at the [[Tepper School of Business|Graduate School of Industrial Administration (GSIA)]] of [[Carnegie Mellon University]].  Despite limited prior experience in corporate finance, Miller and Modigliani were assigned to teach the subject to current business students. Finding the published material on the topic lacking, the professors created the theorem based on their own research.<ref>{{Cite journal |last=Modigliani |first=Franco |last2=Miller |first2=Merton H. |date=1958 |title=The Cost of Capital, Corporation Finance and the Theory of Investment |url=http://www.jstor.org/stable/1809766 |journal=The American Economic Review |volume=48 |issue=3 |pages=261–297 |issn=0002-8282}}</ref> The result of this was the article in the ''American Economic Review'' and what has later been known as the M&M theorem.

Miller and Modigliani published a number of follow-up papers discussing some of these issues. The theorem was first proposed by F. Modigliani and M. Miller in 1958.