An example of a firm's financing decision would include:

Question

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The issuance of ten-year versus twenty-year bonds is an example of a financing decision as it involves the decision of the firm to raise capital through issuing bonds and the choice of the maturity date of the bonds. Options A, B, and D are not financing decisions. Acquiring a competitive firm and determining the price of the asset are investment decisions, while increasing the price of products is a pricing decision.

An Example of a Firm's Financing Decision Would Include