JBR has total debt to total assets ratio of 40% which is lower than the Industry average of 70%. J&R believes in using the pecking order theory. Therefore, J&R should use the following strategy when raising capitat: Multiple Choice masimire short term debt before issuing long term chrbt. use retained earnings before issuing any new common stock O sue 10 coupon bonds prior to 128 coupon bonds to save on interest expense or equity while maintaining reserve borrowing capacity se debt to get closer to the optimal level the issue equity only if necessary