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Basic Question 0 of 7

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 am using your study notes and I know of at least 5 other friends of mine who used it and passed the exam last Dec. Keep up your great work!
Barnes

Barnes

Learning Outcome Statements

describe optimal and target capital structures

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