1. Which of the following statements are True or False: (5 Marks)

1. According to the Miller and Modigilani model it does not matter whether you raise money from debt or equity.
2. According to the Trade off theory borrowing from debt would always be better than borrowing though equity.
3. According to the Pecking order theory retained earning is better than borrowing through debt or equity.
4. According to the Pecking order theory raising money through equity is better than borrowing.
5. According to the Pecking order theory firms that raise money through equity experience an increase in price.