PRIN.OF CORPORATE FINANCE
PRIN.OF CORPORATE FINANCE
13th Edition
ISBN: 9781260013900
Author: BREALEY
Publisher: RENT MCG
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Chapter 17, Problem 25PS

Investor choice Suppose that new security designs could be patented.14 The patent holder could restrict use of the new design or charge other firms royalties for using it. What effect would such patents have on MM's capital-structure irrelevance theory?

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