The possihility of banikrupecy will ilo all of the following exceptt incrase tranciel distess costs. redece the eurnent market value of the Eim Q. reduce the possible payoff to atockholders. D. fedsce the intereat rate on debt. QUESTION.36 Which of the folsewing statements is true rezarding the trade-off theory A. Hisker firms should have high target dett ration 2. Target dehe matio is 0.5 for all fiftns: C. Riskiet firms shruld rely more con debt financing: Q. Less risky firme ought to have a greater amount of debt financing. GuEstiok 37 Von the tallewine inferrefien is answer austithe H. M. asd 39. A 81.20 F. 5.3.20 1.1.20