Question: According to the trade - off theory, the capital structure that maximizes the value of a firm also: Minimizes financial distress costs. Maximizes the present

According to the trade

-

off theory, the capital structure that maximizes the value of a firm also: Minimizes financial distress costs. Maximizes the present value of the bankruptcy costs. Maximizes the value of debt. Maximizes the present value of the tax shield on debt. Minimizes the cost of capital.

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