The Miller and Modigliani propositions I and II

Question: Berk and DeMarzo (2020) indicate that “With perfect capital markets, financial transactions neither add nor destroy value, but instead represent a repackaging of risk (and therefore return)” (p. 515). Outline the general ideas embedded in the Miller and Modigliani propositions I and II and defend them but highlight any noteworthy caveats. Include at least two citations that support your response. https://plus.pearson.com/courses/7006024/products/1SWIMQUGY0R/pages/acf6e7aebf098cfd184ab02d359ad3ef0d7ffb7cf-id_toc2?locale=&isTpi=Y&key=26184224661243477057282022&iesCode=Hc3pyPNZkI