The Pecking Order Hypothesis States That Managers Will Have a Preference

question 16

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
• E)equity,retained earnings,debt

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