Whch one of the following is correct according to pecking$-$order theory?

A$)$ Firms avoid external debte except as a last resort.

B$)$ Firms stockpile internally generated cash.

$06$

C$.$ There is an optimal capital structure for every firm,

D$)$ There is a direct relationship between a firm's profit and its debt levels.

O

E$)$ Afirms capital struccure is independent of ils need for external funding.

Question $28(3\mathrm{.}1255$ points$)$