According to the Market Timing theory of capital structure, mangers issue equity when they cannot issue debt
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Question:
According to the Market Timing theory of capital structure, mangers issue equity when
- they cannot issue debt anymore
- equity prices are abnormally low
- equity prices are abnormally high
- interest rates are abnormally low
According to theTrade-off Theory of capital structure,there is a trade-off between
- cost of tax and benefit of tax
- bankruptcy costs and tax shield
- tax savings and tax costs
- cost of business risk and benefit of business risk
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