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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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