Capital Structure Irrelevance

Class, indicate whether you agree with the following statement that describes Modigliani and Miller's work:

"In the absence of taxes, bankruptcy costs and asymmetric information, and in an efficient market, the value of the firm is unaffected by how that firm is financed" (MIT Sloan Lecture Notes, Finance Theory II, Dirk Jenter, 2003).

Perhaps others can discuss the impact of taxes, bankruptcy and asymmetric information as it relates to capital structure.