ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Andhra Pradesh- Dealing with Floating Populations

October 26, 1985 ured for his breakthrough in the analysis of (i) household saving behaviour, and (ii) valuation of corporate stock.
Both the theories for which Modigliani has been known, and that too far quite some time, were published in the 50s. His life-cycle theory says, to put it simply, that individuals who save to provide for their old age and not for their descendants lay aside most when their income is the highest and thus smoothen their consumption level over their life-cycle, His theory of corporate stock valuation dismisses the relationship between the market value of a company's common stock or equity on the one hand and the size and structure of its debt on the other. The value of corporate stock, said Modigliani, is determined mainly by what an enterprise is expected to earn in the future and not by how much a company is leveraged.

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