Barclay and Smith (1996) investigated the significance of two features of debt--maturity and priority--and found that:
A) companies with low ratios of market value to book value tend to use debt of shorter maturity and lower priority.
B) companies with high ratios of market value to book value tend to use debt of longer maturity and higher priority.
C) companies with low ratios of market value to book value tend to use debt of longer maturity and higher priority.
D) companies with high ratios of market value to book value tend to use debt of shorter maturity and higher priority.
Correct Answer:
Verified
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