Merton Miller

Born	May 16, 1923 Boston, Massachusetts
Died	June 3, 2000 Chicago, Illinois
Residence	USA
Nationality	US
Field	Economics
Institutions	Carnegie Mellon University University of Chicago
Alma mater	Johns Hopkins University (Ph.D.) Harvard University (M.A.)
Academic advisor	Fritz Machlup
Notable students	Eugene F. Fama Michael Jensen Richard Roll Myron Scholes
Known for	Modigliani-Miller theorem Capital structure irrelevance principle
Notable prizes	Nobel Prize in Economics (1990)

Merton Howard Miller (May 16, 1923 – June 3, 2000) won the Bank of Sweden Prize in Economic Sciences in Memory of Alfred Nobel in 1990, along with Harry Markowitz and William Sharpe. Image File history File links No higher resolution available. ... May 16 is the 136th day of the year (137th in leap years) in the Gregorian calendar. ... Year 1923 (MCMXXIII) was a common year starting on Monday (link will display the full calendar) of the Gregorian calendar. ... Nickname: City on the Hill, Beantown, The Hub (of the Universe)1, Athens of America, The Cradle of Revolution, Puritan City, Americas Walking City Location in Massachusetts, USA Counties Suffolk County Mayor Thomas M. Menino(D) Area    - City 232. ... Official language(s) English Capital Boston Largest city Boston Area  Ranked 44th  - Total 10,555 sq mi (27,360 km²)  - Width 183 miles (295 km)  - Length 113 miles (182 km)  - % water 13. ... June 3 is the 154th day of the year (155th in leap years) in the Gregorian calendar. ... 2000 (MM) was a leap year starting on Saturday of the Gregorian calendar. ... Nickname: Motto: Urbs In Horto (Latin: City in a Garden), I Will Location in the Chicago metro area and Illinois Coordinates: , Country United States State Illinois County Cook & DuPage Settled 1770s Incorporated March 4, 1837 Government  - Mayor Richard M. Daley (D) Area  - City  234. ... Official language(s) English[1] Capital Springfield Largest city Chicago Largest metro area Chicago Area  Ranked 25th  - Total 57,918 sq mi (149,998 km²)  - Width 210 miles (340 km)  - Length 390 miles (629 km)  - % water 4. ... Image File history File links This is a lossless scalable vector image. ... United States may refer to: Places: United States of America SS United States, the fastest ocean liner ever built. ... Image File history File links This is a lossless scalable vector image. ... This article needs additional references or sources for verification. ... Carnegie Mellon University is a private research university located in Pittsburgh, Pennsylvania. ... The University of Chicago is a private university located principally in the Hyde Park neighborhood of Chicago. ... The Johns Hopkins University, founded in 1876, is a private institution of higher learning located in Baltimore, Maryland, United States. ... Harvard University (incorporated as The President and Fellows of Harvard College) is a private university in Cambridge, Massachusetts, USA and a member of the Ivy League. ... Fritz Machlup (December 15, 1902-January 30, 1983) was an Austrian-American economist. ... Wikibooks has more on the topic of Eugene Fama Eugene Fama (born February 14, 1939) is an American economist, known for his work on portfolio theory and asset pricing, both theoretical and empirical. ... Michael C. Jensen joined the faculty of the Harvard Business School in 1985. ... Myron S. Scholes (born July 1, 1941) is one of the authors of the famous Black-Scholes equation. ... The Modigliani-Miller theorem (of Franco Modigliani, Merton Miller) forms the basis for modern thinking on capital structure. ... The Modigliani-Miller theorem (of Franco Modigliani, Merton Miller) forms the basis for modern thinking on capital structure. ... The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel[1] (Swedish: Sveriges Riksbanks pris i ekonomisk vetenskap till Alfred Nobels minne), commonly called the Nobel Prize in Economics, or more acurately the Nobel Memorial Prize in Economic Sciences, is a prize awarded each year for outstanding intellectual... May 16 is the 136th day of the year (137th in leap years) in the Gregorian calendar. ... Year 1923 (MCMXXIII) was a common year starting on Monday (link will display the full calendar) of the Gregorian calendar. ... June 3 is the 154th day of the year (155th in leap years) in the Gregorian calendar. ... 2000 (MM) was a leap year starting on Saturday of the Gregorian calendar. ... The Bank of Sweden Prize in Economic Sciences in Memory of Alfred Nobel (in Swedish Sveriges Riksbanks pris i ekonomisk vetenskap till Alfred Nobels minne), is a prize awarded each year for outstanding intellectual contributions in the field of economics. ... Year 1990 (MCMXC) was a common year starting on Monday (link displays the 1990 Gregorian calendar). ... Harry Max Markowitz (born August 24, 1927) is an influential economist at the Rady School of Management at the University of California, San Diego. ... William Forsyth Sharpe (born June 16, 1934) is Professor of Finance, Emeritus at Stanford Universitys Graduate School of Business and the winner of the 1990 Bank of Sweden Prize in Economic Sciences in Memory of Alfred Nobel. ...

He was born in Boston, Massachusetts. He worked during World War II as an economist in the division of tax research of the Treasury Department, and received a Ph.D. in economics from Johns Hopkins University, 1952. His first academic appointment after receiving his doctorate was Visiting Assistant Lecturer at the London School of Economics. Nickname: Location in Massachusetts, USA Coordinates: , Country United States State Massachusetts County Suffolk County Settled 1630 Incorporated (city) 1822 Government  - Governor Deval Patrick (D) Area  - City  89. ... Combatants Allied powers: China France Great Britain Soviet Union United States and others Axis powers: Germany Italy Japan and others Commanders Chiang Kai-shek Charles de Gaulle Winston Churchill Joseph Stalin Franklin Roosevelt Adolf Hitler Benito Mussolini Hideki Tōjō Casualties Military dead: 17,000,000 Civilian dead: 33,000... Doctor of Philosophy, abbreviated Ph. ... The Johns Hopkins University, founded in 1876, is a private institution of higher learning located in Baltimore, Maryland, United States. ... 1952 (MCMLII) was a Leap year starting on Tuesday (link will take you to calendar). ... The London School of Economics and Political Science (LSE) is a specialist constituent college of the University of London. ...

In 1958, at Carnegie Institute of Technology (now Carnegie-Mellon University) whose Graduate School of Industrial Administration(now Tepper School of Business) was the first and most influential research-oriented U.S. business schools, he collaborated with his colleague Franco Modigliani there to write a paper on “The Cost of Capital, Corporate Finance and the Theory of Investment.” This paper urged a fundamental objection to the traditional view of corporate finance, according to which a corporation can reduce its cost of capital by finding the right debt-to-equity ratio. According to Miller-Modigliani, on the other hand, there is no right ratio, so corporate managers should seek to minimize tax liability and maximize corporate net wealth, letting the debt ratio chips fall where they will. Year 1958 (MCMLVIII) was a common year starting on Wednesday (link will display full calendar) of the Gregorian calendar. ... The Carnegie Institute of Technology (Carnegie Tech), the predecessor to Carnegie Mellon University, was founded in 1900 by Andrew Carnegie as the Carnegie Technical Schools. ... Carnegie Mellon University is a private research university located in Pittsburgh, Pennsylvania. ... The David A. Tepper School of Business, located at Carnegie Mellon University in Pittsburgh, Pennsylvania, consistently ranks among the top business schools in the world. ... The Tepper School of Business at Carnegie Mellon, located in Pittsburgh, Pennsylvania, consistently ranks among the top business schools in the world[4][5]. It is also consistently among the leaders in a wide range of specializations, such as Finance, Entrepreneurship, Operations Management and Information Technology. ... Franco Modigliani (June 18, 1918 – September 25, 2003) was an Italian-American economist at the MIT Sloan School of Management, and winner of the Nobel Memorial Prize in Economics in 1985. ... Corporate finance is an area of finance dealing with the financial decisions corporations make and the tools and analysis used to make these decisions. ... The cost of capital for a firm is a weighted sum of the cost of equity and the cost of debt (see the financing decision). ...

The way in which they arrived at this conclusion made use of the "no arbitrage" argument, i.e. the premise that any state of affairs that will allow traders of any market instrument to create a riskless money machine will almost immediately disappear. They set the pattern for many arguments based on that premise in subsequent years. In economics and finance, arbitrage is the practice of taking advantage of a price differential between two or more markets: a combination of matching deals are struck that capitalize upon the imbalance, the profit being the difference between the market prices. ... In discourse, a premise (also premiss in British usage) is a claim which is part of a reason or objection. ...

He was also responsible for the "Irrelevance principle" in which he asserted that the costs of raising capital for a corporation by selling more stock (equity), or issuing more bonds (debt), should be equal; thus a corporation's value in the stock market is independent of its capital structure. His analogy was that a pizza cut up different ways does not change the underlying amount of pizza. The Modigliani-Miller theorem (of Franco Modigliani, Merton Miller) forms the basis for modern thinking on capital structure. ... A pizza with tomatoes, field mushrooms, and onions as toppings. ...

Mr. Miller wrote or co-authored eight books. He became a fellow of the Econometric Society in 1975 and was president of the American Finance Association in 1976. He was on the faculty of the University of Chicago Graduate School of Business from 1961 until his retirement in 1993. Year 1975 (MCMLXXV) was a common year starting on Wednesday (link will display full calendar) of the Gregorian calendar. ... Year 1976 (MCMLXXVI) was a leap year starting on Thursday (link will display full calendar) of the Gregorian calendar. ... The University of Chicago Graduate School of Business, also known as Chicago GSB, is one of the world’s leading business schools and the second oldest in the United States. ... Year 1961 (MCMLXI) was a common year starting on Sunday (link will display full calendar) of the Gregorian calendar. ... Year 1993 (MCMXCIII) was a common year starting on Friday (link will display full 1993 Gregorian calendar). ...

He served as a public director on the Chicago Board of Trade 1983-85 and the Chicago Mercantile Exchange from 1990 until his death in Chicago on June 3rd, 2000. The Chicago Board of Trade (CBOT) NYSE: BOT, established in 1848, is the worlds oldest futures and options exchange. ... President George W. Bush at the CME (March 6, 2001). ... Year 1990 (MCMXC) was a common year starting on Monday (link displays the 1990 Gregorian calendar). ... Nickname: Motto: Urbs In Horto (Latin: City in a Garden), I Will Location in the Chicago metro area and Illinois Coordinates: , Country United States State Illinois County Cook & DuPage Settled 1770s Incorporated March 4, 1837 Government  - Mayor Richard M. Daley (D) Area  - City  234. ...

See also

• Modigliani-Miller theorem