Which of the Following Provides Evidence That Is Consistent with the Pecking

question 13

Multiple Choice

Which of the following provides evidence that is consistent with the pecking order theory?

• A)An unusually profitable firm in an industry with relatively slow growth will end up with an unusually high debt/equity ratio.
• B)An unusually profitable firm in an industry with relatively high growth will end up with an unusually low debt/equity ratio.
• C)An unprofitable firm in an industry with relatively slow growth will end up with a low debt/equity ratio.
• D)Companies' past needs for external finance,rather than a target capital structure,determine capital structures.

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Definitions:

Interpersonal Relationships

The connections and interactions between two or more people, which can vary in closeness and significance.

Career Success

The attainment of goals and achievements in one’s professional life, often measured by advancements, recognition, and personal satisfaction.

Interpersonal Skills

Pertains to abilities that facilitate effective communication and interaction with others, vital for both personal and professional relationships.

Trust

A firm belief in the reliability, truth, or ability of someone or something.