The pattern of corporate financing is discussed in the textbook (Figure 15.2 page 487 and the discussion on page 488). Explain the reasons for this pattern of financing using all relevant topics/theories of capital structure

Figure 15.2 Financing Decisions by U.S. Nonfinancial Corporations 150% 125% Internal financing New equity New debt 100% 75% 50% 25% 0% -25% -50% -75% -100% -125% -150%LLLL LL L 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 SOURCE: Board of Governors of the Federal Reserve System."Flow of Funds Accounts of the United States." Federal Reserve Statistical Release. June 9, 2011,