Capital structure is irrelevant if: -and only if firm-issued debt is riskless -Each investor holds the same proportion of debt and equity...
ivagiaCapital structure is irrelevant if:
-and only if firm-issued debt is riskless
-Each investor holds the same proportion of debt and equity of the firm
-The capital markets are perfect
-Each investor holds a fully diversified portfolio
The value of the "pie" is independent of how it sliced
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