A conservative financing plan involves A

The answer is C.

A financing plan would portray how to acquire funds for the operation, which will have an impact on the financial leverage. Any change in the financial leverage will either increase or decrease the average cost of capital, and value of investments as well. A significant high financial leverage implies that the firm is heavily using debt to fund its operation, which increases its liquidity and default risk. Thus, a financing plan with a significant financial leverage might raise more concerns for business owners, lenders and other investors.