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:

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