The Pecking Order Hypothesis States That Managers Will Have a Preference

question 82

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

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