You are given a background paragraph that describes one or more causal or qualitative relationships such as a relationship in economics or a scientific law and a story that makes use of the concepts or the relationship described in the provided paragraph. You are also given a question about the story that requires an understanding of the relationship described in the background paragraph and the story. You need to come up with an answer to the given question; the answer will be a span from either the question or the story. In order to correctly answer the given question, you need to understand the relationship mentioned in the background paragraph and should be able to use it to understand that in the story. Your answer can not consist of any word that is not mentioned in any of these: the background paragraph, the story, or the question. You can directly copy and paste a span from the story or the question while answering the given question.

Background Paragraph: The trade-off theory of capital structure is the idea that a company chooses how much debt finance and how much equity finance to use by balancing the costs and benefits. The classical version of the hypothesis goes back to Kraus and Litzenberger[1] who considered a balance between the dead-weight costs of bankruptcy and the tax saving benefits of debt. Often agency costs are also included in the balance. This theory is often set up as a competitor theory to the pecking order theory of capital structure. A review of the literature is provided by Frank and Goyal.[2]

An important purpose of the theory is to explain the fact that corporations usually are financed partly with debt and partly with equity. It states that there is an advantage to financing with debt, the tax benefits of debt and there is a cost of financing with debt, the costs of financial distress including bankruptcy costs of debt and non-bankruptcy costs (e.g. staff leaving, suppliers demanding disadvantageous payment terms, bondholder/stockholder infighting, etc.). The marginal benefit of further increases in debt declines as debt increases, while the marginal cost increases, so that a firm that is optimizing its overall value will focus on this trade-off when choosing how much debt and equity to use for financing. 
Story: Company X stopped taking on more debt, and decided to file for bankruptcy, while company Y, kept benefiting from the tax benefits of debt, having a lower debt level. 
Question: Which company discharged more debt, company X or company Y?
company X.

Background Paragraph: Something that is elastic can return to its original shape after being stretched or compressed. This property is called elasticity . As you stretch or compress an elastic material like a bungee cord, it resists the change in shape. It exerts a counter force in the opposite direction. This force is called elastic force . The farther the material is stretched or compressed, the greater the elastic force becomes. As soon as the stretching or compressing force is released, elastic force causes the material to spring back to its original shape. You can watch a demonstration of elastic force at this URL:. 
Story: Andy is playing with a rubber band. He stretches the rubber band out as far as he can without breaking it. 
Question: Will the amount of force required to stretch the rubber band increase or decrease as he stretched it further?
increase.

Background Paragraph: Sometimes muscles and tendons get injured when a person starts doing an activity before they have warmed up properly. A warm up is a slow increase in the intensity of a physical activity that prepares muscles for an activity. Warming up increases the blood flow to the muscles and increases the heart rate. Warmed-up muscles and tendons are less likely to get injured. For example, before running or playing soccer, a person might jog slowly to warm muscles and increase their heart rate. Even elite athletes need to warm up ( Figure below ). 
Story: Two teams were competing in a 5 km race. White team warmed up before the race, but Blue team arrived with a bus late and didn't have time to warm up properly before the race. 
Question: Which team's racers had their muscles prepared for an activity?

White.