The Pecking Order Hypothesis States That Managers Will Have a Preference

question 20

Multiple Choice

The pecking order hypothesis states that managers will have a preference to fund investment by using , followed by , and will issue as a last resort.

• A) debt, retained earnings, equity
• B) retained earnings, equity, debt
• C) retained earnings, debt, equity
• D) debt, equity, retained earnings

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Definitions:

Apotheosis

The elevation of a person or thing to divine status, or a perfect example or ultimate expression of a concept.

Antoninus Pius

Roman Emperor from 138 to 161 AD, known for his peaceful reign and significant contributions to the architectural landscape of Rome, including the construction of temples and public works.

Triumphal March

A type of ceremonial music or a segment within a larger work designed to commemorate victory or celebration, often marked by a grand and uplifting character.

Sarcophagi

Stone coffins typically adorned with sculptures or inscriptions and used to bury the dead, especially in ancient civilizations such as Egypt, Rome, and Greece.