For each of the following empirical findings, does the finding support only the Trade-Off theory (TO only), only the Pecking Order theory (PO only), both theories (TO and PO), or neither theory (neither), according to Fama and French (2002)?

For each part (a)-(e), provide an answer of either TO only, PO only, TO and PO, or neither.

1. Firms that have fewer investments have higher dividend payouts.

2. Firms that have more investments have less leverage.

3. Firms that are more profitable have lower leverage.

4. Short-term variation in earnings and investment is mostly absorbed by debt.

5. Firms that are more profitable have higher dividend payouts.