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: During the 1670s, the Dutch tradesman Antony van Leeuwenhoek, shown in Figure below , used microscopes to observe many microbes and body cells. Leeuwenhoek developed an interest in microscopy and ground his own lenses to make simple microscopes. Leeuwenhoek was so good at making lenses that his simple microscopes were able to magnify much more clearly than the compound microscopes of his day. His microscope's increased ability to magnify over 200x is comparable to a modern compound light microscope. Compound microscopes , which are microscopes that use more than one lens, had been invented around 1595 by Zacharias Jansen, a Dutch spectacle-maker. Several people, including Robert Hooke, had built compound microscopes and were making important discoveries with them during Leeuwenhoek's time.
Story: John is interested in the history of science. He went to a science museum to learn more about microscopes. First he saw a Leeuwenhoek microscope, which was labeled as item A, then he saw a compound microscope of Leeuwenhoek's time, which was labeled as item B. At the very end of his museum tour he saw a modern compound light microscope, which was labeled as item C.
Question: Which one would have more lenses, item A or item B?
answer:
item B.

question:
Background Paragraph: Iron is first oxidized to iron(II) ions by oxygen. In the second step, the iron(II) ions are further oxidized and combine with water and oxygen gas to produce a hydrated form of iron(III) oxide known as rust. Rusting is one of many example of corrosion. Corrosion is the deterioration of metals by redox processes. Corrosion causes enormous amounts of damage to buildings, bridges, ships, cars, and other objects. It has been estimated that corrosion costs the U.S. economy over 100 billion dollars each year. A great amount of time and effort is spent to try to limit or prevent corrosion.
Story: Aaron is doing a science experiment for school. He is trying to see what happens to different iron objects in different conditions. He has two samples that he is testing. Sample A he has placed in a dark dry room away from the elements. Sample B he has placed outside under no cover, so it will be rained on.
Question: Will Sample B be more or less likely to show signs of corrosion compared to Sample A?
answer:
more.

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: Bob is a financial analyst. He used to work for company A. Bob noticed that company A is mostly financed by debt. Recently, he changed job and now working as a financial analyst for another company, company B. Company B has completely different culture than company A. Company B is mostly financed by equity.
Question: Which company would most likely enjoy tax benefits of debt, company A or company B?
answer:
company A.