Question
In the pecking order theory of financing, debt is preferred to equity financing because A. Cost of debt is lower than the cost of equity
In the pecking order theory of financing, debt is preferred to equity financing because
| A. | Cost of debt is lower than the cost of equity
| |
| B. | Tax benefits of debt exceed the expected costs of financial distress
| |
| C. | Debt financing increases the EPS of the firm
| |
| D. | Issuing debt is considered more positive by the markets |
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Financial Institutions Management A Risk Management Approach
Authors: Anthony Saunders, Marcia Cornett, Otgo Erhemjamts
10th Edition
1260013820, 978-1260013825
