Please help me answer this in full. You may refer to "Analysis for Financial Management" for help.

c. Recent research (Ivanov, Pettit, and Whited, 2020) shows that many firms increase leverage when corporate taxes are reduced. Using the trade-off theory of capital structure, explain why this is a surprising finding. Then, still using only the trade-off theory, explain why it could make sense. (Hint: think about both the costs and benefits of taxes in the trade- off theory.)