1 a) In an M&M frictionless environment, where there are no taxes and contracts are costless to make and enforce, the wealth of the shareholder is the same no matter what capital structure the firm adopts. In such an environment, neither the stock price nor shareholders' wealth would be affected
nature publishing group http://structbio.nature.com news and views Department of Biological Sciences. chem.276146-116200 Columbia University, New York, New York 6. Chen,.. Sharma, 5. Quiocho, F.A. Davidson. A.L. 15. Jones. P.M. George. A.M. FEMS Microbiol. Lett