Read the following passage and choose the most appropriate term to complete each sentence. Managers will try to increase debt levels to the point where the value of additional is exactly offset by the additional costs of 1 1. This is known as the ( of optimal capital structure. The theory predicts that companies with J and plenty of l ought to borrow (Click to select) safe tangible assets less pecking order theory capital taxable income to shield interest tax shields financial distress trade-off theory more risky assets