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According to the trade-off theory of capital structure, the maximum value of the firm is...

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Finance

According to the trade-off theory of capital structure, the maximum value of the firm is obtained by trading off:

A. the book value of debt against the book value of equity.
B. the market value of debt against the market value of equity.
C. what outside investors know against what firm management knows
D. the present value of the interest tax shield against the present value of financial distress costs.

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