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The "Predation" Explains That

Question 1

Multiple Choice

The "predation" explains that:


A) if a preferred financing source is not available,the firm will try to raise funding through the next preferred choice.
B) there is a natural hierarchy of preferred financing routes for managers wishing to raise funds.
C) firms weigh the costs of having too much debt when they are doing poorly against the tax benefits of debt when they are doing well to arrive at their optimal capital structures.
D) a competitor might purposely lower its prices in an attempt to drive the highly levered competitor out of business.

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