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Which of the following statement about pecking order capital structure theory is NOT true? Asymmetric information between management and investors is considered in capital structure
Which of the following statement about pecking order capital structure theory is NOT true?
Asymmetric information between management and investors is considered in capital structure decisions. | ||
There is an optimal debt ratio for a corporation. | ||
Firms prefer internal finance. | ||
If external finance is required, firms issue safest security first. |
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