[Solved] Which of the following is NOT an implication of the pecking order theory of capital structure? A) On average,a firm's stock price drops when it announces an equity issue. B) Firms may want to maintain a reserve of cash or unused borrowing capacity. C) More-profitable firms (all else equal)should have higher debt ratios. D) Firms may fail to undertake positive-NPV projects if they would have to be financed with a new issue of equity. Advertisements: Messages intended to promote or sell a product, service, or idea through various media channels. Federal Trade Commission: A federal agency established to enforce antitrust and consumer protection laws in the United States, preventing unfair or deceptive business practices. Bait-And-Switch: A deceptive marketing tactic where a product or service is advertised at a low price to attract customers, who are then persuaded to purchase a more expensive item. Advertise: To publicly announce or promote products, services, or events through various media channels to attract public interest or awareness.