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Which of the following factors is MOST closely related to the Pecking Order Theory of how firms determine capital structure? A. Information signaling of issuing

Which of the following factors is MOST closely related to the Pecking Order Theory of how firms determine capital structure?

  • A. Information signaling of issuing securities.

  • B. Tax impact of interest payments.

  • C. Homemade leverage.

  • D. Analysis of marginal benefit of the tax shield vs marginal expected costs of financial distress.

  • E. Probability of bankruptcy.

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