According to the Pecking-Order Theory,a Firm's Leverage Ratio Is Determined

question 29

Multiple Choice

According to the pecking-order theory,a firm's leverage ratio is determined by:

• A)the value of the tax benefit of debt.
• B)equating the tax benefit of debt to the financial distress costs of debt.
• C)the firm's financing needs.
• D)the market rate of interest.
• E)the profitability of the firm.

---

Definitions:

Loose Stools

Bowel movements that are more liquid than solid, often indicative of digestive issues.

Probiotics

Live microorganisms that, when consumed in adequate amounts, confer a health benefit on the host.

Clear Fluids

Liquids that are transparent and free of particulates, such as water, broth, and certain juices, often recommended in medical contexts for various health reasons.

Whole Grain Products

Foods made from the entire grain kernel, including the bran, germ, and endosperm, offering health benefits such as improved digestion and lowered risk of heart disease.