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19. According to the trade-off theory, because interests paid to creditors are tax deductible for corporations. therefore, (A) firms have incentives to borrow more, (B)

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19. According to the trade-off theory, because interests paid to creditors are tax deductible for corporations. therefore, (A) firms have incentives to borrow more, (B) firms have incentives to issue more shares, (C) firms would like to repurchase their own shares, (D) only potential bankruptcy costs may limit how much firms would borrow

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