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Which of the following statement is correct? O A. Firms that do not take on debt as part of their capital structure are known as

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Which of the following statement is correct? O A. Firms that do not take on debt as part of their capital structure are known as leveraged firms. OB. Pecking order theory implies that profitable company will have more debt capacity. O C. According to pecking order theory, firms prefer external financing first. OD. The greater amount of debt carried by a firm, the lesser chance of bankruptcy

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