Which of the Following Is a Reasonable Conclusion from the Trade-Off

Which of the following is a reasonable conclusion from the trade-off theory of capital structure?

A) A high debt ratio will result in a maximum price of a firm's ordinary shares.
B) A firm's ordinary share price will not be affected by the amount of debt a firm uses.
C) A low debt ratio will result in a maximum price for a firm's ordinary shares.
D) Modest levels of debt have a more favorable impact on a firm's average cost of capital and share price than no debt.