The Pecking Order Hypothesis Predicts Which of the Following

question 15

Multiple Choice

The Pecking Order Hypothesis predicts which of the following?

• A)Firms prefer internal financing first.
• B)If external financing is required,firms should first seek debt financing.
• C)If external financing is required,firms will choose to issue the safest or cheapest security first,starting with debt financing and using equity as a last resort.
• D)All of these

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Definitions:

Ergot

A fungal disease of cereal crops and grasses, producing toxic alkaloids, historically associated with outbreaks of ergotism in humans.

Truffles

A type of highly valued fungus that grows underground, often near the roots of certain trees, prized for their distinctive flavor in culinary uses.

Algal Contribution

The impact or role of algae in ecosystems, particularly regarding oxygen production through photosynthesis and as a foundational element of food chains.

Fungal Component

A part or element of a system that is derived from fungi or consists of fungal organisms.