The trade-off theory states that the capital structure decision involves a tradeoff between the costs and benefits of debt financing.

a) true
b) false

Answers

The law of supply and demand
The answer is a i think

A) True  

Explanation:

The trade-off Theory states that the Capital Structure of a Company, where company chooses the Debt Finance and Equity finance to use for balancing the Costs and Benefits.



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