Question: QUESTION 2 - 15 MARKS (a) Explain how a firm's optimal capital structure can be found using the trade-off theory(5 marks) (b) Explain the Pecking

QUESTION 2 - 15 MARKS

(a) Explain how a firm's optimal capital structure can be found using the trade-off theory(5 marks) (b) Explain the Pecking Order theory for capital structure(5 marks) (c) Explain why these two theories often give different answers about the best capital structure for a firm(5 marks)

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