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.
Correct Answer:
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