Why do we have to learn about the perfect capital market? With perfect capital market assumption, we learned the Modigliani and Miller theorem, and choosing different financial structures no longer affects a firms value. It sounds very unrealistic (but soon, we will learn how to value firms with market imperfection), so every student might have some doubts about it. However, in every economics textbook, we saw this particularly unrealistic assumption for all the models. Again, I raise a question for all learners in this class: Why do we need to learn the perfect capital market? Do you think it is really helpful to understand the market dynamism, or not at all? Please use any concepts we learned in this class when you try to argue it.