What differences might you expect in the capital structure

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Reference no: EM13290278

Based upon the ""trade-off theory"" of capital structure, what differences might you expect in the capital structure of a food producer and a defense contractor?

a. Higher debt-equity ratio for food producer.
b. Higher debt-equity ratio for defense contractor.
c. Neither firm should use debt in their structure.
d. Differences in capital structure will make no valuation differences in these firms.

Reference no: EM13290278

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