According to the trade-off theory: a. The amount of debt a company has is irrelevant. b. Debt

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According to the trade-off theory:
a. The amount of debt a company has is irrelevant.
b. Debt should be used only as a last resort.
c. Debt will not be used if a company's tax rate is high.
d. Companies have an optimal level of debt?

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Fundamentals of Corporate Finance

ISBN: 978-1118845899

3rd edition

Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates

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Question Posted: Oct 19, 2016 10:18 AM

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According to the trade-off theory: a. The amount of debt a company has is irrelevant. b. Debt

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d Option D is Correct The static trade off ...View the full answer

Fundamentals of Corporate Finance

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