Which of the following is true in The Pecking Order Theory?

Group of answer choices

A firm's cost of equity is dependend upon their business risk and their financial risk.

Firms choose their debt optimally by considering both the tax advantages of debt and the bankruptcy risk of debt.

A firm's value is not dependent upon their mix of debt and equity.

Firms have a preference over their sources of financing: internal financing, then external debt financing, and then external equity financing.