According to the signaling theory of capital structure, firms first use common equity for their capital, then use debt if and only if they can raise no more equity on "reasonable" terms. this occurs because the use of debt financing signals to investors that the firm's managers think that the future does not look good.
a. trueb. false

Brittany has designed four different birdcages, each with the same volume: a square pyramid, a cylinder, a cone, and a sphere. the zoo wants to use one of brittany’s designs but plans to change the volume of the cage. find the design change that would result in the birdcage with the greatest volume. a.) increase the area of the base of the square pyramid by a factor of ten. b.) increase the height of the cylinder by a factor of ten. c.) increase the radius of the cone by a factor of ten. d.) increase the radius of a sphere by a factor of ten.