Which Form of Financing Do Firms Prefer to Use First

question 89

Multiple Choice

Which form of financing do firms 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:

Interference

Occurs when one wave overlaps another, causing a modification in the overall amplitude of the wave, or in cognitive psychology, the impairment of memory performance.

Decay

The gradual reduction in the strength or quantity of something, used metaphorically for the fading of memories over time.

Awake

The state of being conscious, alert, and aware of one's surroundings after sleep.

Proactive Interference

Proactive interference occurs when old information hinders the recall of newly learned information.