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According to the Trade-off Theory of Capital Structure: A. A firm should have no debt because of the expected bankruptcy costs. B. There is a

According to the Trade-off Theory of Capital Structure:

A. A firm should have no debt because of the expected bankruptcy costs.

B. There is a trade-off between interest payments and tax savings of debt.

C. There is a trade-off between expected bankruptcy costs and business risk.

D. There is a trade-off between tax savings of debt and expected bankruptcy costs.

E. There is no optimal capital structure.

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