The Nyquist formula states that the maximum data rate supported by a bandwidth B is 2B bits per second. Doubling the bandwidth doubles the maximum data rate. Signals with more than two levels can represent more data per signal, with the formula becoming C = 2B log2M, where M is the number of signal levels. Shannon's channel capacity theorem defines the maximum reliable transmission rate C for a bandwidth B channel as C = B log2(1 + S/N), where S is the signal power and N is the noise power.