Which of the following statements accurately describes features of the trade-off theory of capital structure? More than one of the other statements accurately describe features of the trade-off theory of capital structure. The theory suggests that firms need to "trade-off" the benefits associated with the tax shield provided by debt with the adverse effects associated with increasing costs of financial distress None of the other statements accurately describe features of the trade-off theory of capital structure. The theory suggests that the optimal level of debt taken on will be at least partly be associated with the level of business risk that the firm is exposed to The theory suggests that companies will first prefer to use internal funds, then issue debt, then hybrid securities and finally external equity