The Pecking Order Hypothesis predicts which of the following?

A) Firms prefer internal financing first.
B) If external financing is required, firms should first seek debt financing.
C) If external financing is required, firms will choose to issue the safest or cheapest security first, starting with debt financing and using equity as a last resort.
D) All of these

Answer: D

Business

You might also like to view...

Visual consistency is important in developing effective advertisements because:

A) of the high cost of producing new ads B) it creates a higher level of brand equity C) buyers, whether consumers or businesses, spend very little time viewing or listening to ads D) it maintains ad consistency

Business

Employers use preliminary screening interviews to

A) find out as much as possible about each job candidate. B) administer pre-employment profiles and drug tests. C) filter out applicants who're not a good fit for the job. D) make on-the-spot offers to the best candidates. E) determine what they can expect from potential job candidates.

Business