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5. The pecking order states how financing should be raised. In order to avoid asymmetrioc information problems and misinterpretation of whether management is sending a
5. The pecking order states how financing should be raised. In order to avoid asymmetrioc information problems and misinterpretation of whether management is sending a signal on security overvaluation, the firm's first rule is to: a. finance with intermally gencrated funds. b. always issue debt then the market won't know when management thinks the security is overvalued. c. issue new equity first. d. issue debt first. c. None of the above
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