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Q: What is static trade off theory and what are its assumptions?
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Static trade-off theory relation to agency theory of capital structure?

Trade-off theory of capital structure basically entails offsetting the costs of debt against the benefits of debt. MM 1963 introduced the tax benefit of debt. Later work led to a optimal capital structure which is given by the trade off thoery. The first element usually considered as the cost of debt is usually the financial distress costs or bankruptcy costs of debt. It is important to note that this includes the direct and indirect bankruptcy costs. Trade-off theory can also include the agency costs from agency theory as a cost of debt to explain why companies dont have 100% debt as expected from MM 1963. 95% of empirical papers in this area of study looks at the conflict between managers and shareholders. The others look at conflicts between debtholders and shareholders. Both are equally important to explain how the agency theory is related to the trade-off theory. The introduction of a dynamic trade-off theory makes the predictions of the this theory a lot more accurate and reflective of that in practise.


What is the impact of capital structure theory to the value of a firm with particular reference to the Hamada theory and Trade off theory?

iam looking for the solution to the above question


What is liquidity corporate and policy in business?

The Theory and Practice of Corporate Liquidity Policy. January ... The trade off view suggests that firms trade off various costs and benefits.


In the long run there is no trade off between inflation and unemployment substaniate with appropiate theory?

yes true


What is the of static electricity as charges move off an object?

Static


What are the assumptions of the kinetic theory.?

Kinetic energy is the energy produced or exerted by an object in motion. The three assumptions are, that there is matter (the object exists), it is moving (in motion), and it is producing or exerting energy.


The loss of static electricity as a charge move off an object?

The loss of static electricity as a charge moves off an object is known as an electro static discharge.


Gas particles can be assumed to travel in a straight line until they collide with an object?

yes, but since there are atoms and molecules in the atmosphere they bounce off of them and go in a different direction.


What is the plural of trade-off?

Trade-offs is the plural of trade-off


What is a trade-off?

A trade-off is an alternative that we sacrifice when we make a decision.


What is a limiting factor in design?

constraint


What does trade off means?

This refers to the fact that there is often a compromise regarding the benefits and the costs of certain outcomes. Sometimes there is a need to compromise, and to understand that there is a cost to most beneficial things. The US Congress has brought this concept to the level of art. Much of great art is static. Trade off could be seen as a basic concept of "cost-benefit" analysis.