Capital Structure in The Real World
If capital structure is irrelevant in a perfect market, then imperfections which exist in the real world must be the cause of its relevance. The theories below try to address some of these imperfections, by relaxing assumptions made in the M&M model.
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Famous quotes containing the words capital, structure, real and/or world:
“We make needless ado about capital punishment,—taking lives, when there is no life to take.”
—Henry David Thoreau (1817–1862)
“The philosopher believes that the value of his philosophy lies in its totality, in its structure: posterity discovers it in the stones with which he built and with which other structures are subsequently built that are frequently better—and so, in the fact that that structure can be demolished and yet still possess value as material.”
—Friedrich Nietzsche (1844–1900)
“If it is asserted that civilization is a real advance in the condition of man,—and I think that it is, though only the wise improve their advantages,—it must be shown that it has produced better dwellings without making them more costly; and the cost of a thing is the amount of what I will call life which is required to be exchanged for it, immediately or in the long run.”
—Henry David Thoreau (1817–1862)
“Oh, Scott, for people like you and me the world can be a wonderful place. The sky’s as blue as it is for the giants, the friends are as warm.”
—Richard Matheson (b. 1926)