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Cheap Nike Air Force Ones debt issuance until the debt capacity
This paper tests the static tradeoff theory against the pecking order theory. Cheap Nike Air Force Ones We focus on an important difference in prediction: the static tradeoff theory argues that a firm increases leverage until it reaches Nike Air Max Sale Cheap its target debt ratio, while the pecking order yields debt issuance until the debt capacity is reached. We find that for our sample of US firms the pecking order theory is a better descriptor of firms’ issue decisions than the static tradeoff theory. In contrast, when we focus on repurchase decisions we find that the static tradeoff theory is a stronger predictor of firms’ capital structure decisions. Four equations are presented relating the well-known Catalan numbers and the Motzkin numbers mn, defined by <img height="36" border="0" style="vertical-align:bottom" width="299" alt="" title="" src="http://origin-ars.els-cdn.com/content/image/1-s2.0-009589567790003X-si1.gif"> first encountered in Th. Motzkin's paper (Bull. Amer. Math. Soc.54 (1948), 352–360) in a circle chording setting.In this paper five pairs of subsets of the plane trees provide natural settings for the four equations. In these settings the equations are immediate consequences of “natural correspondences” of the plane tree families.