The Pecking Order Theory Of Capital Structure Implies That I When A Firm Uses External Finance It Means That The


The pecking order theory of capital structure implies that: I. When a firm uses external finance it means that the

firm did not have enough abundant internal finance II. Firms prefer debt to equity when using external finance III. Firms issue securities based on the trade-off between financial distress costs and interest tax savings

a. I, II, III b. I c. II d. I,II e. II,III