Critics of the MM position

Critics of the MM position have focused their attack on the realism of assuming these four conditions. We can separate these criticisms into two groups. The first group of criticisms is directed toward result A, that the only benefit from debt financing is due to the tax deductibility of interest. The second group of criticisms is directed toward point B, that there is no disadvantage to debt even if used very heavily. We summarize the various arguments below.