Question: There are several theories that exist to try and explain the capital structure. Please briefly define two theories from the list below: Modigliani and Miller

There are several theories that exist to try and explain the capital structure. Please briefly define two theories from the list below:

Modigliani and Miller Hypothesis

Trade-Off Theory

Signaling Theory

Reserve Borrowing Capacity

Pecking Order Hypothesis

Market Timing Hypothesis

Thank you.

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