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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.
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What does dynamic structure mean?
it is something to do with buildings and static
what does plane of application mean?
The plane of application is the side of the structure affected by the force. External Forces and Loads. Every structure needs to support a load. The total load is the sum of the static and dynamic loads. The static load is the effect of gravity on a structure.
What are three ways to think of characters in relation to real people?
There are round character,dynamic character and static character
Are minorities scholarships still available after you have already started college?
Both static and dynamic structures are the sequence of statements. The only difference is that the sequence of statements in a static structure is fixed, whereas in a dynamic structure it is not fixed. That means
What is the difference between a static shape and a dynamic shapes?
A static shape has a fixed relationship between all of its vertexes. A dynamic shape can vary the position of at least one of its vertexes in relation to the others.
What is the difference between a static shape and a dynamic shape?
A static shape has a fixed relationship between all of its vertexes. A dynamic shape can vary the position of at least one of its vertexes in relation to the others.
Compare between static packet filters dynamic packet filter and proxy-based firewall in relation to security?
Nitrogen
How does PHP differ from HTML in terms of application and structure?
In structure <?php ?> <html> </html> in application - one is static and another is dynamic. this much ......
The loss of static electricity as electric charges transfer from one object to another called?
Electric discharge, is the word that makes this statement.
The portion of the bony labyrinth responsible for static equilibrium is the?
saccule and utricle in the vestibule of the inner ear are responsible for static equilibrium. They contain sensory hair cells that detect the position of the head in relation to gravity.
How does a lightning rod ''ground'' static electricity?
A lightning rod provides a path for static electricity to flow safely to the ground. When a lightning rod is properly installed, it helps conduct the electrical charge away from a building or structure, reducing the risk of damage from a lightning strike by dissipating the energy into the ground. This prevents the buildup of static electricity in the building or structure.
What is static angle?
Static angle refers to the fixed angle of a structure or part that does not move. It can be a reference point for measuring other angles or positions within the system. Static angles are often used in engineering and construction to ensure precise alignment and positioning of components.
