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Which of the following is consistent with the Tradeoff theory of capital structure? A. The cost of capital continuously decreases as the firm's debt ratio

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Which of the following is consistent with the Tradeoff theory of capital structure? A. The cost of capital continuously decreases as the firm's debt ratio increases B. The cost of capital remains constant as the firm's debt ratio increases C. The cost of capital continuously increases as the firm's debt ratio increases D. There is an optimal level of debt financing E. Capital structure does not affect a firm's cost of capital

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