A study of capital structure in several developed countries found that debt ratios were positively related to
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A study of capital structure in several developed countries found that debt ratios were positively related to firm size and the proportion of tangible versus intangible assets and negatively related to market-book ratios and profitability. What do these relationships imply for the accuracy of the tradeoff theory? Explain.
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The relationships described in the study have important implications for the accuracy of the tradeoff theory of capital structure The tradeoff theory suggests that firms aim to balance the benefits an...View the full answer
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