a) Introduce examples of market incompleteness and show what will happen to capital structure with market incompleteness. (Modigliani, Franco, and Merton Miller Corporate Income Taxes and the cost of Capital: A Correction American Economic Review, June 1963, 53, 3, 433-443.). Use the following table. Realities and expected outcomes Perfect capital Days Anderfect competition Firms and investors can borrow/lend at the same rate Equal access to all relevant information (without informational asymmetry) No transaction costs Melanes .742 , ROLA 7h et est. Zo khon No taxes Without costs of financial distress Without agency costs a) Introduce examples of market incompleteness and show what will happen to capital structure with market incompleteness. (Modigliani, Franco, and Merton Miller Corporate Income Taxes and the cost of Capital: A Correction American Economic Review, June 1963, 53, 3, 433-443.). Use the following table. Realities and expected outcomes Perfect capital Days Anderfect competition Firms and investors can borrow/lend at the same rate Equal access to all relevant information (without informational asymmetry) No transaction costs Melanes .742 , ROLA 7h et est. Zo khon No taxes Without costs of financial distress Without agency costs