<i>In short, the theorem states that in conditions that will never exist in the real world,...</i><p>If only Modigliani and Miller weren&#x27;t total idiots. Then they might have repeated their calculations with these assumptions relaxed.<p><i>First they say &quot;the value of a firm is unaffected by how it&#x27;s financed&quot;, but then: &quot;the value of the company increases in proportion to the amount of debt used&quot;, so if &quot;debt used&quot; counts as &quot;financing&quot; then the theory contradicts itself, at least as described by Wikipedia.</i><p>If you bothered to read the article, you&#x27;d recognize that Modigliani-Miller actually did the exact calculation you previously criticized them for not doing. Similarly, if you read it, you&#x27;d recognize that the claims you think are contradictory actually apply to different circumstances (taxes vs no taxes).<p>What next, medicine is contradictory because &quot;if you don&#x27;t eat cyanide, you probably won&#x27;t drop dead, but if you do eat cyanide you will&quot;?