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Papa Mario's Pizza Company Sells Common Stock

Question 179

Multiple Choice

Papa Mario's Pizza Company sells common stock. What type of financing are they using?


A) They are using equity financing and the return shareholders earn is fixed.
B) They are using equity financing and the return shareholders earn depends on how profitable the company is.
C) They are using debt financing and the return debt holders earn is fixed.
D) They are using debt financing and the return debt holders earn depends on how profitable the company is.

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