Miller model
Miller model is the model that introduces the effect of personal taxes into the valuation of a levered firm, which reduces the advantage of corporate debt financing.
Definitions
According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),
- Miller model. Introduces the effect of personal taxes into the valuation of a levered firm, which reduces the advantage of corporate debt financing.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
