For 10 points, name this doubly-eponymous theorem of financial economics which states that a firm's value is unaffected by its capital structure or debt financing.
In 1969, Stiglitz showed that the assumption that each entity belonged to a "risk class" was not essential in proving this economic result. Jensen and Meckling argued that agency-costs exist due to the asset substitution problem in challenging an assumption of this result, which was explained by one of its developers by the analogy of a gigantic tub of whole milk. The second proposition associated with this economic result is that there is no optimal dividend payout ratio payout, while its first proposition originally assumed that there are no bankruptcy costs, no asymmetric information, and no taxes, and showed the irrelevance of leverage in determining the value of a company. For 10 points, name this doubly-eponymous theorem of financial economics which states that a firm's value is unaffected by its capital structure or debt financing.
In 1969, Stiglitz showed that the assumption that each entity belonged to a "risk class" was not essential in proving this economic result.
Modigliani-Miller Theorem [or Miller-Modigliani Theorem; or Capital Structure Irrelevance]