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:
“Capital as such is not evil; it is its wrong use that is evil. Capital in some form or other will always be needed.”
—Mohandas K. Gandhi (1869–1948)
“Each structure and institution here was so primitive that you could at once refer it to its source; but our buildings commonly suggest neither their origin nor their purpose.”
—Henry David Thoreau (1817–1862)
“The pendulum oscillates between these two terms: Suffering—that opens a window on the real and is the main condition of the artistic experience, and Boredom ... that must be considered as the most tolerable because the most durable of human evils.”
—Samuel Beckett (1906–1989)
“The world is independent of my will.”
—Ludwig Wittgenstein (1889–1951)