According to the trade-off theory of capital structure, the maximum value of the firm is...
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Finance
According to the trade-off theory of capital structure, the maximum value of the firm is obtained by trading off:
| A. | the book value of debt against the book value of equity. |
| B. | the market value of debt against the market value of equity. |
| C. | what outside investors know against what firm management knows |
| D. | the present value of the interest tax shield against the present value of financial distress costs. |
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