📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!


    Question

    In corporate finance, what is the 'pecking order

    theory'?
    A Firms do not pay dividends to preserve cash. Correct Answer Incorrect Answer
    B Firms equally mix equity and debt to balance risk. Correct Answer Incorrect Answer
    C Firms prefer equity over debt for financing. Correct Answer Incorrect Answer
    D Firms prefer internal financing first, then debt, and only issue equity as a last resort, Correct Answer Incorrect Answer

    Solution

    The correct answer is D

    Practice Next

    Relevant for Exams:

    ask-question