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Which of the Following Statements About the Financing Pyramid Is

Question 10

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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