Answer:
The total cash flow of the firm
Explanation:
The M & M theory is a theory developed by Modgliani Miller about the capital structure of a company and its overall value .
The theory was first enacted under the assumption of a perfectly efficient market and when the effects of taxes and bankruptcy costs were not considered, However , he later developed another theory where tax and other costs are now considered to address the real world condition.
In summary , the basic lesson is that the value of a firm is dependent on the total cash floe of the firm.
