According to theFree Cash Flow Theory, issuing debt and buying back stock is beneficial because...

• A.It moves the debt ratio closer to the optimal point, according to the Tradeoff Theory.
• B.It benefits the company by increasing the tax shields of debt.
• C.It prevents managers from wasting money.
• D.It provides funding for new projects.
• E.It prevents the manager from selling part of the company for too low a price.
• F.It signals that the stock is undervalued.
• G.It prevents dilution.