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.

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 had more costs than benefits related to debt, company X or company Y?
company X.

Background Paragraph: The example of someone having a positive experience with a drug is easy to see how drug dependence and the law of effect works. The tolerance for a drug goes up as one continues to use it after having a positive experience with a certain amount the first time.[38] It will take more and more to get that same feeling. This is when the controlled substance in an experiment would have to be modified and the experiment would really begin. The law of work for psychologist B. F. Skinner almost half a century later on the principles of operant conditioning, "a learning process by which the effect, or consequence, of a response influences the future rate of production of that response.[39]. 
Story: The cocaine club met to discuss their experiences. They all said they always had a great experience using cocaine and used the same amount each time. They told how many times they used cocaine. Mary used it 2 times, Patricia used it 3 times, Linda used it 5 times, Barbara used it 10 times, Elizabeth used it 15 times, Jennifer used it 20 times, and Maria used it 30 times. 
Question: Who has a higher tolerance for cocaine: Jennifer or Linda?
Jennifer.

Background Paragraph: Cholesterol can't dissolve in the blood. It has to be transported to and from the cells by carriers called lipoproteins. Low-density lipoprotein, or LDL, is known as "bad" cholesterol. High-density lipoprotein (HDL) is known as good cholesterol. When too much LDL cholesterol circulates in the blood, it can slowly build up in the inner walls of the arteries that feed the heart and brain. Together with other substances, it can form plaque, and lead to atherosclerosis. If a clot forms and blocks a narrowed artery, a heart attack or stroke can result. Cholesterol comes from the food you eat as well as being made by the body. To lower bad cholesterol, a diet low in saturated fat and dietary cholesterol should be followed. Regular aerobic exercise also lowers LDL cholesterol and increases HDL cholesterol. 
Story: Michael and Robert are two patients at a cardiology clinic. Both just received their blood test results and were told that they need to improve their cholesterol levels. They were each recommended to make changes to their diets. Michael took this advice to heart, and reduced the levels of saturated fat and dietary cholesterol he consumed. Robert, on the other hand, continued to consume high levels of saturated fat and dietary cholesterol. 
Question: Who will have lower levels of LDL cholesterol in the future?

Michael.

