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13. Which form of financing do companies prefer to use first according to the pecking-order theory? A. Regular debt B. Internal funds C. Common stock
13. Which form of financing do companies prefer to use first according to the pecking-order theory? A. Regular debt B. Internal funds C. Common stock D. Preferred stock 14. The basic lesson of M&M Theory (under ideal case) is that the value of a firm is dependent upon: I the total cash flows of the firm. II. the firm's capital structure. III. size of the stockholders' claims. I' IV. the risk of the total cash flows of the firm A. I only B. I and III only C. I and IV only D. II and III only 15. The costs incurred by a business in an effort to avoid bankruptcy are classified as costs. A. flotation B. direct bankruptcy C. indirect bankruptcy D. financial solvency
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