According to the static trade-off theory: a. The amount of debt a company has is irrelevant. b.

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According to the static trade-off theory:
a. The amount of debt a company has is irrelevant.
b. Debt should be used only as a last resort.
c. Debt will not be used if a company’s tax rate is high.
d. Companies have an optimal level of debt.

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Fundamentals of corporate finance

ISBN: 978-0470876442

2nd Edition

Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates

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Question Posted: Jun 12, 2012 01:18 AM

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According to the static trade-off theory: a. The amount of debt a company has is irrelevant. b.

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d is correct The static tradeoff theory i...View the full answer

Fundamentals of corporate finance

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