Pecking order: "I was amazed to find that the announcement of a stock issue drives down the value of the issuing firm by 2030%, on average, of the proceeds on the issue. That issue cost dwarfs the underwriters spread and the admin costs of the issue. It makes common stock issues prohibitively expensive"' You are contemplating a $100 million stock issue. On past evidence, you anticipate the announcement of this issue will drive down the stock price by 3% and the market value of your firm will fall by 30% of the amount raised. On the other hand, additional equity financing is required to fund an investment project that you believe has a positive NPV of $40 million. Should you proceed with the issue. Probably They should never issue equity No