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Under the trade-off view of financial structure, which of the following statements about firm characteristics might correctly describe a firm that has high costs of
Under the trade-off view of financial structure, which of the following statements about firm characteristics might correctly describe a firm that has high costs of financial distress, low benefits from financial leverage, and chooses a low target debt/value ratio? High operating profits and large tax liabilities Assets in place are a large part of value and investment opportunities are a small part of value The firm should not use interest tax shields to protect its sizeable income from taxation The him fears loss of customers in the event it experiences financial distress
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