The article points out that Modigliani-Miller's theory considers two types of the loan. The optimum structure of the capital of the company is absent within this theory, as the average cost of the capital of the company of financing of firm: by means of risk own means and risk-free WACC or it is indifferent to leverage level (in the absence of corporate taxes), or decreases with leverage (in the presence of corporate taxes). The authors modify Modigliani-Miller's theory, having refused the assumption about without risk-taking of borrowed funds of firm, also specify that in this case the cost of own capital of firm correlates with the cost of loans, and the optimum structure of the capital of the company still is absent. It testifies that proved by authors (within the modern theory of cost and structure of the capital of the company of Brusov-Filatova-Orekhova (BFO theory) insolvency of widely known theory of a compromise (trade off theory) takes place and within Modigliani's modified theory - Miller.
Keywords: compromise theory, loan financing, capital cost, optimum structure of capital, leverage, Modigliani-Miller's modified theory, Brusov-Filatova-Orekhova theory
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