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3. One theory of capital structure asserts that a firm's capital structure generally reflects an attempt to maximize the tax benefits of debt while simultaneously

3. One theory of capital structure asserts that a firm's capital structure generally reflects an attempt to maximize the tax benefits of debt while simultaneously minimizing the potential costs of financial distress. What is the name of this theory and how might you test it? Explain the other theories of capital structure and how they relate to this theory

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