The Pecking Order Hypothesis Predicts Which of the Following

question 15

Multiple Choice

The Pecking Order Hypothesis predicts which of the following?

• A)Firms prefer internal financing first.
• B)If external financing is required,firms should first seek debt financing.
• C)If external financing is required,firms will choose to issue the safest or cheapest security first,starting with debt financing and using equity as a last resort.
• D)All of these

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