The phi term in Hamada's equation links this result with the capital asset pricing model.  
Jensen and Meckling expanded on this theory to account for the consequences of agency given asymmetric information. This result's discoverer debated Litzenberger and Ramaswamy over the value of the covariation in holding period return and dividend value. The phi term in Hamada's equation links this result with the capital asset pricing model.  This result is used to explode the EPS fallacy, as well as the weighted average cost of capital fallacy. With taxes it proposes that V sub L is equal to V sub U plus T sub C times D, indicating that the debt is multiplied by the tax rate to equate the unlevered and levered values. Regardless of taxes, however, this result proposes the irrelevance of capital structure. For 10 points, name this theorem of corporate finance, named for two economists.
Jensen and Meckling expanded on this theory to account for the consequences of agency given asymmetric information.
{Miller}-{Modigliani} theorem [accept {capital structure irrelevance} before mentioned]