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he static (or trade-off) theory of capital structure recommends to a. use more debt when the incremental PV of the interest tax shield is less
he static (or trade-off) theory of capital structure recommends to a. use more debt when the incremental PV of the interest tax shield is less than the incremental PV of distress costs. b. use more debt when the incremental PV of distress costs is less than the incremental PV of the interest tax shield. c. use more debt when the total PV of distress costs is less than the total PV of the interest tax shield. d. use only debt. e. use no debt. f. Other, specify
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