Which of the Following Statements About the Financing Pyramid Is

question 46

Multiple Choice

Which of the following statements about the financing pyramid is true?

• A)The financing pyramid is just a more general way of referring to the pecking order.
• B)The financing pyramid suggests that most of a firm's financing should be through the use of equity.
• C)Most publicly-traded firms use the financing pyramid financing arrangement.
• D)Both the financing pyramid and the pecking order suggest that firms should use a lot of short-term, collateralized debt in their capital structures.

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