Chapter 2 The Modigliani-Miller theorem \When capital markets are perfect and complete, corporate decisions are trivial.\ 2.1 Arrow-Debreu model with assets 2.1.1 Primitives
Capital Structure The Modigliani and Miller capital structure and payout policy theorems were the result of the practical questions\How should a firm choose its capital structure\. The theory that we covered last time clarified the nature of the modigliani and miller result
The nature of derivatives a derivative is an instrument whose value depends on the values of other more basic underlying variables Options, Futures, and Other Derivatives, 5th edition C 2002 by John C. Hull