Question
According to the pecking order theory, why do unprofitable firms generally borrow more? Debt issues bring good luck to the firm They lack of internal
According to the pecking order theory, why do unprofitable firms generally borrow more?
Debt issues bring good luck to the firm
They lack of internal funds
Leverage is 'tax advantageous' compared with retained earnings
They have more financial slack
Equity issues are more expensive
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Multinational Business Finance
Authors: David K. Eiteman, Arthur I. Stonehill, Michael H. Moffett
13th edition
132743469, 978-0132743464
