Question: The trade - off theory differs from the pecking order theory of capital structure in the following ways except Group of answer choices The pecking

The trade

-

off theory differs from the pecking order theory of capital structure in the following ways except

Group of answer choices

The pecking

-

order theory is based on the difficulties of obtaining the financing at reasonable cost.

The pecking order model suggest that each firm balances the benefits of debt, with cost of debt. By contrast, the trade

-

off posit that each firm chooses its leverage ratio based on its financial needs.

The trade

-

off theory is based on the difficulties of obtaining the financing at reasonable cost.

The trade

-

off model suggest that each firm balances the benefits of debt, with cost of debt. By contrast, the pecking order posit that each firm chooses its leverage ratio based on its financial needs.

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