Which One of the Following Is Not Implied by the Pecking

question 56

Multiple Choice

Which one of the following is not implied by the pecking order theory?

• A)Profitable firms tend to use less debt than unprofitable firms.
• B)Companies like having financial slack.
• C)Companies prefer to borrow up to the point where the financial distress costs offset the tax benefit of debt.
• D)There is no target debt-equity ratio for a firm.
• E)Firms tend to accumulate cash in anticipation of future projects.

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Definitions:

Binge Eating Disorder

A psychiatric condition characterized by recurring episodes of eating large amounts of food quickly to the point of discomfort, often accompanied by feelings of loss of control and guilt.

Self-Evaluation

The process of critically examining and judging one's own behavior, qualities, or performance.

Bulimia Nervosa

An eating disorder characterized by episodes of binge eating followed by compensatory behaviors, such as vomiting.

Body Shape

The physical form or structure of a person's body, often considered in terms of societal or personal standards of beauty or fitness.