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Myers stated that we have no general theory of capital structure; rather we have several conditional theories to explain how firms choose between debt and

Myers stated that we have no general theory of capital structure; rather we have several conditional theories to explain how firms choose between debt and equity capital. Define and describe briefly the following capital structure theories: (i) the tradeoff theory, (ii) the pecking order theory, and (iii) the dynamic tradeoff theory.

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