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24-01-2020
Business

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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

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Karabo99 Karabo99

24-01-2020

Answer:

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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