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NEED ASAP The Trade-off Theory used to explain capital structure involves the debate between Increased use of Debt and the chance of Increased Risk of

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The Trade-off Theory used to explain capital structure involves the debate between Increased use of Debt and the chance of Increased Risk of Bankruptcy Lower Tax Rates versus the chance of Bankruptcy Higher Tax Rates that produce Lower Costs of the Debt Component Increased Use of Debt versus the Decrease in cost of equity

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