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The tradeoff model of capital structure suggests that when deciding the amount of debt to take on, a firm should consider the trade-off between what

The tradeoff model of capital structure suggests that when deciding the amount of debt to take on, a firm should consider the trade-off between what two aspects of debt?

Question 1 options:

The dividend payout ratio of equity with the cost of issuing debt

The tax advantages of debt financing with the tax advantage of equity

The tax advantages of debt financing with the costs of financial distress

The tax advantages of debt financing with the costs of issuing debt

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