As the Recession of 2007-2008 Loomed Over Both Large and Small

Multiple Choice

As the recession of 2007-2008 loomed over both large and small businesses, many firms looked for ways to deleverage. The term "deleveraging" implies that the firms:

A) avoided equity financing.
B) borrowed money at lower interest rates.
C) bought back their own stock to reduce the stock outstanding.
D) replaced much of the debt in their capital structure with equity.