If there were no imperfections in financial markets, what capital structure should the firm seek? Why are

Question:

If there were no imperfections in financial markets, what should the firm seek? Why are market imperfections important considerations in finance? Which imperfections are most important?
Capital Structure
Capital structure refers to a company’s outstanding debt and equity. The capital structure is the particular combination of debt and equity used by a finance its overall operations and growth. Capital structure maximizes the market value of a...