In perfect and complete markets Miller and Modigliani (1958) show that there is no advantage...
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Accounting
In perfect and complete markets Miller and Modigliani (1958) show that there is no advantage to debt vs equity in the capital structure. That is, the value of the firm is determined by its income from operations, not from its capital structure.
What do MM mean by perfect and complete markets?
How did their argument change with the introduction of corporate taxes into their model?
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