What is traded off in trade off theory of capital structure

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If there are costs associated with financial distress, how may this affect the capital structure decision of a company?

Why do we adjust for taxes in determining the cost of debt, but not for the costs of preferred stock and common stock?

What is traded off in the trade-off theory of capital structure?

Reference no: EM131313308

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What is traded off in trade off theory of capital structure : If there are costs associated with financial distress, how may this affect the capital structure decision of a company?

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