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: The example of someone having a positive experience with a drug is easy to see how drug dependence and the law of effect works. The tolerance for a drug goes up as one continues to use it after having a positive experience with a certain amount the first time.[38] It will take more and more to get that same feeling. This is when the controlled substance in an experiment would have to be modified and the experiment would really begin. The law of work for psychologist B. F. Skinner almost half a century later on the principles of operant conditioning, "a learning process by which the effect, or consequence, of a response influences the future rate of production of that response.[39]. 
Story: The Coke Crew met to discuss their experiences. They all said they always had a great experience using coke and used the same amount each time. They told how many times they used coke. Ashley used it 23 times, Judith used it 27 times, Rose used it 32 times, Janice used it 43 times, Kelly used it 57 times, Nicole used it 65 times, and Judy used it 72 times. 
Question: Who has a higher tolerance for coke: Janice or Judy?
Judy.

Background Paragraph: Old age begins in the mid-60s and lasts until the end of life. Most people over 65 have retired from work, freeing up their time for hobbies, grandchildren, and other interests. Stamina, strength, reflex time, and the senses all decline during old age, and the number of brain cells decreases as well. The immune system becomes less efficient, increasing the risk of serious illnesses such as cancer and pneumonia. Diseases such as Alzheimer’s disease that cause loss of mental function also become more common. 
Story: Ted had 2 uncles. Uncle Jerry was getting up there in age, he was 78 years-old. Uncle Tom was younger, he was in his early 50's and still very active and productive. 
Question: Which uncle had retired from work?

Jerry.