No. 10. Which of the following theories is based on a notion that managers will not always act in the best interest of the shareholders? Signaling theory MM theory Pecking order theory Agency cost theory Preference order theoryQuestion No. 11. Which of the following theory advocates a firms' financing choices in order of preferences starting from retained earnings as a first choice to raising equity as last choice? Preference order theory Signaling theory Traditional theory Pecking order theory Agency cost theory