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.
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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?

Answer: company X.


Question: Background Paragraph: Flywheel energy storage (FES) works by accelerating a rotor (flywheel) to a very high speed, holding energy as rotational energy. When energy is extracted, the flywheel's rotational speed declines as a consequence of conservation of energy; adding energy correspondingly results in an increase in the speed of the flywheel.

Most FES systems use electricity to accelerate and decelerate the flywheel, but devices that directly use mechanical energy are under consideration. 
Story: Ben works with a flywheel, and has been instructed at various times to change the speeds based on certain conditions. He operates a device that gives or limits the flywheels energy by turning a crank left to give more energy, or right to decrease energy. 
Question: Will the flywheel go faster or slower if the crank is turned to the right?

Answer: slower.


Question: Background Paragraph: The lungs of mammals are unique in having alveoli . These are tiny, sac-like structures. Each alveolus is surrounded by a network of very small blood vessels (see Figure below ). Because there are millions of alveoli in each lung, they greatly increase the surface area for gas exchange between the lungs and bloodstream. Human lungs, for example, contain about 300 million alveoli. They give the lungs a total surface area for gas exchange of up to 90 square meters (968 square feet). That’s about as much surface area as one side of a volleyball court!. 
Story: Two friends read about respiratory systems. Paul read more about the lungs of mammals, while Pete read more about the lungs of frogs. 
Question: Which student read less about human lungs?

Answer:
Pete.