Merton Miller

Merton Miller was an influential American economist known for his contributions to financial theory, particularly the concept of capital structure. He argued that a firm's value is unaffected by how it finances itself—whether through debt or equity—under certain conditions, a theory known as the Modigliani-Miller theorem. This challenged traditional views on financing and has had a lasting impact on corporate finance. Miller also contributed to understanding options pricing and advocated for the use of rational analysis in economic decision-making. His work helped shape modern economics and financial practices.