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19. Which of the following is correct: A) Trade-off theory posits that firms should set their financial leverage as large as they can, due to

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19. Which of the following is correct: A) Trade-off theory posits that firms should set their financial leverage as large as they can, due to the tax benefit of debt. B) Firms with many growth opportunities should have low debt, according to the pecking order theory. C) Large firms should have more debt, according to the pecking order theory. D) Firms may use debt to signal their fundamentals to investors E) MM theory without taxes gives a guideline as to how to set an optimal capital structure at the firm level

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