Explain trade off theory and pecking order theory

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Reference no: EM1347127

Trade Off Theory and Pecking Order Theory

Based on Trade Off Theory and Pecking Order Theory, discuss how the optimal mix of debt and equity in capital structure is attained where there is a trade-off between the expected benefits and costs of debt financing.

- Compare Pecking Order Theory and Trade Off Theory

- How do Pecking Order Theory and Trade Off Theory relate to optimal leverage?

Reference no: EM1347127

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