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According to the trade-off theory that has been suggested as a possible explanation for the differences in firms' capital structures that we observe in the

According to the trade-off theory that has been suggested as a possible explanation for the differences in firms' capital structures that we observe in the real world, which of the following securities is the least expensive form of financing for a particular firm?

a.

Preferred stock

b.

Retained earnings

c.

Corporate debt

d.

Classified stock

e.

Common stock

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