Question 20 (0.5 points)

According to the hierarchical financing preference theory, the company uses, in order, the following sources of financing: (1) equity, (2) debt, and (3) new issuance of common shares.

Options for question 20:

True

False

Question 21 (0.5 points)

The nature of a company's assets in no way influences its debt capacity.

Options for question 21:

True

False