Which of the Following Correctly Ranks the Capital Structure Hierarchy

question 3

Multiple Choice

Which of the following correctly ranks the capital structure hierarchy?

• A)High yield bonds, mezzanine debt, equity contribution, bank debt
• B)Equity contribution, mezzanine debt, high yield bonds, bank debt
• C)Equity contribution, high yield bonds, mezzanine debt, bank debt
• D)Bank debt, mezzanine debt, high yield bonds, equity contribution

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Definitions:

Taxes

Compulsory financial charges or some other type of levy imposed upon a taxpayer by a governmental organization in order to fund government spending and various public expenditures.

Maximum Number

The highest attainable or allowed number, often used in contexts like optimizing outputs, capacities, or selections.

Progressive

A term often used to describe a tax system where the rate increases as the taxable amount increases, typically aimed at reducing income inequality.

Regressive

A characteristic of a tax system where the tax rate decreases as the taxable amount increases.