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Basic Question 2 of 15

The static trade-off theory tries to balance between ______ and ______.

I. dividends distributed
II. tax shield benefit from using debt
III. the costs of financial distress
IV. business risks

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nigelyang7 It comes straight forward from the notes.
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I was very pleased with your notes and question bank. I especially like the mock exams because it helped to pull everything together.
Martin Rockenfeldt

Martin Rockenfeldt

Learning Outcome Statements

describe optimal and target capital structures

CFA® 2026 Level I Curriculum, Volume 2, Module 6.