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Which of the following is an implication drawn from the pecking order theory? Multiple Choice Internal financing is a last resort due to shareholders' desire
Which of the following is an implication drawn from the pecking order theory?
Multiple Choice
Internal financing is a last resort due to shareholders' desire for current income.
Due to high information costs associated with riskier securities companies will only issue equity as a last resort.
Managers have no preference about the form of financing they employ.
Debt financing is a last resort due to the large direct and indirect bankruptcy costs associated with this form of financing.
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