The speaker exposes a returns version of the Modigliani-Miller theorem. Then is explained the influence the capital structure has on the way people perceive the company. Afterwards, the effect of risk on the cost of equity and debt is explained (in the MM world). M. Thesmar then presents an application of the MM theorem : the valuation of a subscription right in SEOs. Finally, an exercise on dilution and accretion is done with the students.