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Which of these options is most accurate with respect to the use of debt by a start - up fashion retailer with negative cash flow
Which of these options is most accurate with respect to the use of debt by a startup fashion retailer with negative cash flow and uncertain revenue prospects?
Question options:
A
Debt financing will be unavailable or very costly
B
The company will prefer to use equity rather than debt given its uncertain cash flow outlook.
C
The company will mix debt and equity at any proportion if there are high growth prospects
D
Both A and B are correct
E
None is correct
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