Which of the following statements correctly describes the balance between debt and equity as described in the trade-off theory?

A. Debt shouldn't be used because the trade-off between the tax benefits and risk is too volatile.

B. A company should use equity until its costs exceeds its benefits; then use debt for the rest.

C. A company should finance itself using 50 percent debt, 50 percent equity.

D. A company should use debt until its costs exceeds its benefits; then use equity for the rest.