Which Form of Financing Do Companies Prefer to Use First

question 69

Multiple Choice

Which form of financing do companies prefer to use first according to the pecking-order theory?

• A) Regular debt
• B) Convertible debt
• C) Common stock
• D) Preferred stock
• E) Internal funds

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Definitions:

Displacement

The movement of something from its place or position, often used in the context of geological features or populations.

Rotation

The spinning movement of a planet or celestial body on its axis, resulting in the cyclical progression of days and nights.

Confining Pressure

The stress applied equally in all directions at any given point in the Earth's crust, influencing the physical properties and deformation of rocks.

Fluid Pressure

The force applied by a stationary fluid at any specific point inside it because of gravity.