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Which of the following statements about the pecking order theory of capital structure is false? Firms prefer internal equity over debt Firms should over-leverage, so
Which of the following statements about the pecking order theory of capital structure is false? Firms prefer internal equity over debt Firms should over-leverage, so they can issue new common stock frequently. If outside funds are required, markets/investors believe managers would issue new common stock if they believe their stock is overvalued. Firms prefer debt over external equity
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