How Can Irrelevance of Capital Structure in Perfect Capital Markets Help Us?

timer Asked: Sep 2nd, 2014
account_balance_wallet $5

Question Description

 The irrelevance of capital structure in perfect capital markets helps us because:

    if something is irrelevant, we can ignore it.
       it applies to real-world capital markets.
       it simplifies a complex subject.

Tutor Answer

School: UCLA

if something is irrelevant, we can ignore it.

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Good stuff. Would use again.

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