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6. A. When a firm needs to raise additional funds, it can potentially obtain them from 3 different sources: external debt, external equity, and internal

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6. A. When a firm needs to raise additional funds, it can potentially obtain them from 3 different sources: external debt, external equity, and internal sources of cash. Based on the pecking order theory, in what order would a firm raise money from these three sources? Why? (5 points) B. Working capital measures how much in liquid assets a company has. Firms deciding how to finance their current assets have to choose among three primary policies: conservative, moderate, and aggressive. Explain all three of these policies. (10 points)

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