Is the M&M capital structure irrelevance theorem applicable in banking? Why or why not?

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Contemporary Financial Intermediation

ISBN: 9780124052086

4th Edition

Authors: Stuart I. Greenbaum, Anjan V. Thakor, Arnoud Boot

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Question Posted: Jan 12, 2024 04:00 AM

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Is the M&M capital structure irrelevance theorem applicable in banking? Why or why not?

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Yes MM propositions do apply in principle to banks but one mus...View the full answer

Contemporary Financial Intermediation

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