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T he modern theory of capital structure began with the celebrated paper of Modigliani and Miller (1958).They (MM) pointed the direction that such theories must take by showing under what conditions capital structure is irrelevant. Since then, many economists have followed the path they mapped.

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References: Microeconomic Theory by Mas-Colell, Whinston, and Green. Mathematical Methods and Models for Economists by de la Fuente. Both are optional.

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