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Which one of the following statements is a correct implication of the pecking order theory? Multiple Choice Companies like financial slack so they can reduce

Which one of the following statements is a correct implication of the pecking order theory? Multiple Choice Companies like financial slack so they can reduce their external capital needs. Profitable firms use more debt. Internally funded projects lower the market value of equity. External financing should be limited to debt issues. The target debt level occurs when the marginal benefit of debt equals the marginal cost of debt

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