Given the background: 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. and the situation: 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. Answer the following question: Which company had more problems with stockholders fighting, company X or company Y?
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Answer: company X

Given the background: Precipitation in grasslands is equal to or less than evapotranspiration and causes soil development to operate in relative drought. Leaching and migration of weathering products is therefore decreased. Large amounts of evaporation causes buildup of calcium (Ca) and other large cations flocculate clay minerals and fulvic acids in the upper soil profile. Impermeable clay limits downward percolation of water and fulvic acids, reducing chemical weathering and podzolization. The depth to the maximum concentration of clay increases in areas of increased precipitation and leaching. When leaching is decreased, the Ca precipitates as calcite (CaCO3) in the lower soil levels, a layer known as caliche. and the situation: Monsoon plays a big role in shaping local climates. In some places of the Horn of Africa monsoon causes heavy rainfall. But across the Red Sea the Arabian Peninsula mostly misses the monsoon. As a result, they have minimal rainfall throughout the year. Answer the following question: Would less or more calcite precipitate in the lower soil levels in Horn of Africa than in Arabian Peninsula?
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Answer: less

Given the background: In the U.S., the majority of electricity is produced by burning coal or other fossil fuels. This causes air pollution, acid rain, and global warming. Fossil fuels are also limited and may eventually run out. Like fossil fuels, radioactive elements are limited. In fact, they are relatively rare, so they could run out sooner rather than later. On the other hand, nuclear fission does not release air pollution or cause the other environmental problems associated with burning fossil fuels. This is the major advantage of using nuclear fission as a source of energy. and the situation: Marion county used coal and oil to produce electricity, while James county used nuclear energy for its electricity production. Both counties had a flourishing economy. Answer the following question: Which county caused less acid rain?
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Answer:
James