The Trade-Off Theory of Optimal Capital Structure Weighs the Benefits

question 63

Multiple Choice

The trade-off theory of optimal capital structure weighs the benefits of debt against the costs o?

• A) financial distress.
• B) input factors.
• C) interest payments.
• D) dividend reinvestment.

---

Definitions:

Highway Train Combination

A vehicle configuration combining a highway tractor with one or more trailers, designed to optimize cargo transportation on roadways.

Converter Dolly

A single axle coupling assembly with a frame, drawbar, and fifth wheel that converts a semitrailer into a full-trailer.

Drawbar

The device used to connect a trailer tongue to either a pintle hook or a ball hitch.

Pintle Hook

A type of towing hitch used to connect trailers or other towable equipment to a vehicle or equipment, characterized by a hook-and-loop configuration.