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Accounting

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Main Question Set Review Later Which of the following is the correct ordering of the capital stack (from most secure to least secure)? Senior debt -> Equity -> Subordinated debt Subordinated debt -> Senior debt -> Equity O Senior debt -> Subordinated debt-> Equity Equity -> Subordinated debt -> Senior debt Review Later Which of the following statements about capital structure are correct? Select ALL correct answers. Having too much equity may dilute earnings and the value of the original investors. A company should always finance its business using as much debt as possible in order to optimize the capital structure. Having too little debt may increase the risk of default in repayment. A company needs to consider the current economic climate when making decisions on debt and equity proportions

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