The Pecking-Order Theory of Capital Structure States That Firms Prefer

question 83

True/False

The pecking-order theory of capital structure states that firms prefer internal financing to avoid sending out adverse signals that may lower the stock price.

---

Definitions:

Ineffective Coping

A state in which an individual has an inability to form a valid appraisal of stressors, inadequate choices of practiced responses, and/or inability to use available resources.

Superficial Cuts

Minor wounds on the surface of the skin, usually not deep and with a low risk of causing significant harm.

Coping Strategies

Techniques or methods employed to manage stress, adversity, or emotional conflict.

Initial Statement

The opening remarks or expressions made at the beginning of a conversation, interview, or examination.