American Economic Association

The Cost of Capital, Corporation Finance and the Theory of Investment
Author(s): Franco Modigliani and Merton H. Miller
Source: The American Economic Review, Vol. 48, No. 3 (Jun., 1958), pp. 261-297
Published by: American Economic Association
Stable URL: http://www.jstor.org/stable/1809766
Accessed: 10/09/2009 09:51
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The

American

VOLUME XLVIII

Revlew

economic
JUNE 1958

NUMBER THREE

THE COST OF CAPITAL, CORPORATION FINANCE
AND THE THEORY OF INVESTMIENT
By

FRANCO

MODIGLIAN1

AND MERTON

H.

MILLER*

What is the "cost