Question
In a perfect market, the financing decision would not change in any way the value of the company and its investment projects. But the market
In a perfect market, the financing decision would not change in any way the value of the company and its investment projects. But the market is not perfect and due to some asymmetries of fiscal treatment of shareholders capital gains and loans, and a certain transaction costs, the financing decision may influence the value of the company and its investments.
Discuss this statement in light of capital structure theories.
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Managerial Accounting Tools for business decision making
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
6th Edition
978-0470477144, 1118096894, 9781118214657, 470477148, 111821465X, 978-1118096895
