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The pecking order theory states that when external funds are required, a firm should Multiple Choice issue convertible bonds prior to straight bonds. refund all

The pecking order theory states that when external funds are required, a firm should
Multiple Choice
issue convertible bonds prior to straight bonds.
refund all monies pulled from internal sources with external funds.
never issue any convertible securities.
only issue equity securities after the firms debt capacity is reached.
limit its debt-equity ratio to no more than .5.

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