(Capital structure theory) Match each of the following definitions to the appropriate terms TERMS Independence theory-with corporate taxes The cost of capital is unaffected by the firm's choice of Independence theory-no taxes DEFINITIONS ndsgenaionce heonr-wi corpora t debt and equity financing The cost of capital decreases as the firm initially uses debt to substitute for equity financing but eventually begins to increase as extreme levels of debt are used 1 states that the cost of capital is unaffected by the firm's choice of debt and equity financing (Select from the drop-down menu) | states that the cost of capital decreases as the firm initially uses debt to substitute for equity financing but eventually begins to increase as extreme levels of debt are used. (Select from the drop-down menu.)