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Which of the following statements is consistent with the static trade-off theory about target capital structure? Capital structure does not affect firm value if the

Which of the following statements is consistent with the static trade-off theory about target capital structure?

Capital structure does not affect firm value if the firm is able to meet its debt obligations.

A firm s capital structure is determined by the cost of security issuance.

Firms with high intangible assets use higher leverage.

Firms choose a capital structure that balances the tax advantages of debt against the expected bankruptcy costs.

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