Which of the following statements pertaining to capital structure is incorrect? Unlike the static trade-off theory, the pecking order theory argues that firms can benefit from having additional cash on hand According to the free cash flow hypothesis, when attempting to reduce excessive spending by managers, issuing debt is a more effective strategy than paying dividends According to the static trade-off theory, firm value is maximized when WACC is minimized Based on the pecking-order theory, a firm should issue debt to finance a project before relying on internal equity The pie model argues that capital structure does not affect the total value of the firm (VT)