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Lets assume that you like to test whether companies behave in line with pecking order theory. Which one of the following statements is correct? a)

Lets assume that you like to test whether companies behave in line with pecking order theory. Which one of the following statements is correct?
a) Whether company issue debt or equity depends on companys stock market valuation
b) Company quick adjusts its debt equity ratio if it deviates from the target one
c) When a company experiences lack of money it will issue debt rather than equity
d) The association between financial deficit and change in debt is relatively low

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