The Directors of Moore Plastics Ltd have been deliberating on the companys capital structure with a view to identifying an optimal financing mix. Opening the deliberation, the Board Chair remarked For the past 10 years, we have deployed a financing strategy of reinvesting as much profit as available. When profit is inadequate, we go for borrowing. New equity offers have been a last resort. Required: Explain with THREE reasons why most managers tend to use financing strategies that follow the pecking order. Identify and explain TWO factors the directors of Moore Plastics Ltd should consider in redesigning the companys capital structure.