d) Outline the predictions of the pecking order theory and evaluate them using both survey and regression evidence. (30 marks) e) Describe the financial distress costs that may affect the value of a corporation and why they are relevant in the context of the trade-off theory. Based on the existing empirical evidence, are these costs economically significant for firms? Explain your answer. (20 marks) d) Outline the predictions of the pecking order theory and evaluate them using both survey and regression evidence. (30 marks) e) Describe the financial distress costs that may affect the value of a corporation and why they are relevant in the context of the trade-off theory. Based on the existing empirical evidence, are these costs economically significant for firms? Explain your answer. (20 marks)