Modigliani and Miller Proposition II Love Machine 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 IIrrelevance ResultStock guru Bill Miller endorses bitcoin as ‘venture bet’ with ‘huge returns’Long-Term Debt to Equity Ratio