Modigliani and Miller Proposition II Daniel Guidotti 14 years ago Modigliani and Miller Proposition IIProposition stating that cost of equity is related to the company’s debt equity ratio in the form of a linear function. Concept proposed by Modigliani and Miller.Recommended for you:Modigliani and Miller Proposition I Irrelevance Result Stock guru Bill Miller endorses bitcoin as ‘venture bet’ with ‘huge returns’ Long-Term Debt to Equity Ratio