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Which one of the following statements is TRUE regarding the Trade-Off Theory of Capital Structure? a. Less risky firms ought to have a greater amount

Which one of the following statements is TRUE regarding the Trade-Off Theory of Capital Structure? a. Less risky firms ought to have a greater amount of debt financing. b. firms with low risk cashflows should not have high levels of debt financing. c. All firms should have the same target debt-equity ratio. d. Riskier firms should have high target debt ratios.

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