Graham and Harvey (2001)s Survey evidence on 392 CFOs find the following factors are important when deciding capital structure decision. Link these factor with the related theory and briefly explain what is the relation between the factor and the theory.

Factors: Financial flexibility; Insufficient internal funds; Interest tax savings; Credit rating; Bankruptcy or distress costs; Equity undervaluation or overvaluation

Theories: MM without tax; MM with tax; Static (Tradeoff); Free cash flow; Signaling; Pecking Order

The numbers of company going public (IPO) is dropping recently, could you think of a reason why?