instruction:
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.
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: Many chemicals that were once commonly used were later found out to be harmful to the environment , to human health, or both. The element lead was once a common additive to gasoline and to paint. Plumbing pipes were once typically made of lead. Only since the 1970s has the danger of lead become apparent. It causes brain damage and small children (who often chewed on objects painted with lead-based paint) are particularly susceptible. The use of lead in gasoline, paint, and plumbing pipes is now banned and new materials are being developed to replace the hazardous lead components. 
Story: John is trying to buy a house. Today, he saw two houses, house A and house B. House A was build in the 1920s. It has lead plumbing pipes and lead based paint. House B was build recently. It does not have lead plumbing pipes or lead based paint. 
Question: Which house would more likely cause brain damage, house A or house B?
answer:
house A.


question:
Background Paragraph: Hydrogen bonds cause water to have a relatively high boiling point of 100°C (212°F). Because of its high boiling point, most water on Earth is in a liquid state rather than in a gaseous state. Water in its liquid state is needed by all living things. Hydrogen bonds also cause water to expand when it freezes. This, in turn, causes ice to have a lower density (mass/volume) than liquid water. The lower density of ice means that it floats on water. For example, in cold climates, ice floats on top of the water in lakes. This allows lake animals such as fish to survive the winter by staying in the water under the ice. 
Story: Scientists are finding more and more evidences of water in the outer space. Earth has mostly liquid water. But that's not the case with other celestial objects. Venus has some water, but it is in gaseous state. On the other hand, water in Jupiter's moon Europa is in frozen state. 
Question: In which place the state of water is in higher density, Earth or Europa?
answer:

Earth.