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Miller and Modigliani Irrelevance Theory Miller and Modigliani are part of the economists school of thought who advocates the “earning theories”. The model is based on discounted retain earnings. (The dividend policy is treated as passive residual). Earnings theoreticians include Miller and Modigliani (1958, 1961, 1963); Walter, J (1956) Fama, E. (1974); Black, F and.