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The theorem has its "clearest and most famous exposition" in the Theory of Interest (1930); particularly in the "second approximation to the theory of interest" ().

The Fisher separation theorem states that:
* the firm's investment decision is independent of the consumption preferences of the owner;
* the investment decision is independent of the financing decision.
* the value of a capital project (investment) is independent of the mix of methods - equity, debt, and/or cash - used to finance the project.

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