Match each theory of capital structure with what each one states. Tradeoff Theory Choose... a) Justifies the moderate us

[answerhappygod]

Match each theory of capital structure with what each one
states.
Tradeoff Theory
Choose...
a) Justifies the moderate use of debt in the company's capital
structure.
b) In essence, it indicates the proportion of the different
sources of financing that management has at its disposal for its
investment projects.
c) Its purpose is to reduce the cash available to management in
such a way that its misuse in the face of agency problems can be
avoided.
d) The capital structure of a firm has no effect on the value of
the firm given the stated assumptions.
e) To avoid sending the wrong message to the market, the company
uses a logical order, from lowest to highest risk, in the use of
capital sources to establish its capital structure.
f) The objective is to determine the amount to be distributed
among its shareholders during the following periods.
Pecking Order Theory
Choose...
a) Justifies the moderate use of debt in the company's capital
structure.
b) In essence, it indicates the proportion of the different
sources of financing that management has at its disposal for its
investment projects.
c) Its purpose is to reduce the cash available to management in
such a way that its misuse in the face of agency problems can be
avoided.
d) The capital structure of a firm has no effect on the value of
the firm given the stated assumptions.
e) To avoid sending the wrong message to the market, the company
uses a logical order, from lowest to highest risk, in the use of
capital sources to establish its capital structure.
f) The objective is to determine the amount to be distributed
among its shareholders during the following periods.
Free Cash Flow Theory
Choose...
a) Justifies the moderate use of debt in the company's capital
structure.
b) In essence, it indicates the proportion of the different
sources of financing that management has at its disposal for its
investment projects.
c) Its purpose is to reduce the cash available to management in
such a way that its misuse in the face of agency problems can be
avoided.
d) The capital structure of a firm has no effect on the value of
the firm given the stated assumptions.
e) To avoid sending the wrong message to the market, the company
uses a logical order, from lowest to highest risk, in the use of
capital sources to establish its capital structure.
f) The objective is to determine the amount to be distributed
among its shareholders during the following periods.
Modigliani-Miller Theory of Irrelevance (MM-1)
Choose...
a) Justifies the moderate use of debt in the company's capital
structure.
b) In essence, it indicates the proportion of the different
sources of financing that management has at its disposal for its
investment projects.
c) Its purpose is to reduce the cash available to management in
such a way that its misuse in the face of agency problems can be
avoided.
d) The capital structure of a firm has no effect on the value of
the firm given the stated assumptions.
e) To avoid sending the wrong message to the market, the company
uses a logical order, from lowest to highest risk, in the use of
capital sources to establish its capital structure.
f) The objective is to determine the amount to be distributed
among its shareholders during the following periods.