dit Viow Insert Format Tools Table VitalSource Home Arial Unicode....A-AA Styles 8. According to the pecking order theory proposed by Stewart Myers of MIT, which of the following are correct? L For financing needs, firms prefer to first tap internal sources such as retained profits and excess cash. IL. There is an inverse relationship between a firm's profit level and its debt level. Ml. Firms prefer to issue new equity rather than source external debt IV. A firm's capital structure is dictated by its need for external financing A. I and ill only B. It and only C, 1,11, and ony D. I, II, and IV only E. I, II, Ill, and IV F. None of the above. 19 1449 wordsC Focus