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.
Read more about this topic: Capital Structure
Famous quotes containing the words capital, structure, real and/or world:
“It is a bore, I admit, to be past seventy, for you are left for execution, and are daily expecting the death-warrant; but ... it is not anything very capital we quit. We are, at the close of life, only hurried away from stomach-aches, pains in the joints, from sleepless nights and unamusing days, from weakness, ugliness, and nervous tremors; but we shall all meet again in another planet, cured of all our defects.”
—Sydney Smith (1771–1845)
“A committee is organic rather than mechanical in its nature: it is not a structure but a plant. It takes root and grows, it flowers, wilts, and dies, scattering the seed from which other committees will bloom in their turn.”
—C. Northcote Parkinson (1909–1993)
“The real world is not easy to live in. It is rough; it is slippery. Without the most clear-eyed adjustments we fall and get crushed. A man must stay sober: not always, but most of the time.”
—Clarence Day (1874–1935)
“The whole world is a man’s birthplace.”
—Publius Papinius Statius (c. 40–96)