The Pecking Order Hypothesis suggests that profitable companies will borrow less (because they have more internal funds available) and may have higher debt-equity ratios because they have more debt capacity
Indicate whether the statement is true or false.
Answer: FALSE
Explanation: The Pecking Order Hypothesis suggests that profitable companies will borrow less (because they have more internal funds available) and may have LOWER debt-equity ratios—the mix of debt and equity borrowing ratio—because they have more debt capacity.
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Assume an investor purchased a fixed-coupon bond at a time when the bond's yield to maturity was 6.9%. Further assume the investor sold the bond prior to maturity and realized a total return of 7.1%. Which of these most likely occurred while the investor owned the bond?
A) the inflation rate increased. B) the bond's current yield increased above the bond's coupon rate. C) market interest rates increased. D) new bonds with similar characteristics have coupon rates of 6.5%.
A résumé should be written
A) with the expectation of getting the job. B) in two pages or less. C) in detail so the employer has no doubt about skills and experiences. D) with repletion of skills and accomplishments. E) with simplicity, using a direct style.