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.

Q: 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 had more costs than benefits related to debt, company X or company Y?

A: company X.
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Q: Background Paragraph: If all the other factors influencing humidity remain constant, at ground level the relative humidity rises as the temperature falls. This is because less vapor is needed to saturate the air, so vapor condenses as the temperature falls. In normal conditions, the dew point temperature will not be greater than the air temperature because relative humidity cannot exceed 100%.[4]. 
Story: Sam lived in Chicago for many years and experienced those high humidity days during the summer, the Indian summers in October and harsh and humid winters, so he decided to move to San Diego, in a warmer and much dryer climate. 
Question: Which city has less fog during summer?

A: San Diego.
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Q: Background Paragraph: Cholesterol has been implicated in heart disease for decades. Atherosclerosis is a disorder of the arteries in which cholesterol and other materials are deposited on the interior of the arterial wall. These deposits lead to the formation of plaques that can restrict or even block the flow of blood through these blood vessels (see Figure below ). A decrease in the flow of blood can lead to high blood pressure and a lowered oxygen supply to the heart muscle. A complete blockage of blood flow to parts of the heart (a heart attack) can cause significant damage due to oxygen deprivation, in some cases leading to death. 
Story: Fred was a good athlete in his youth, and so was Vic. Fred started eating junk food and other fatty foods in his 30's. His cholesterol is very high now. Vic became a vegan later,and he is in a very good physical shape. 
Question: Which friend had a smaller chance of developing atherosclerosis?

A:
Vic.
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