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Business, 28.04.2021 16:20 cranfordjacori

With the background ideas of using the cheapest source first and the impact of asymmetric​ information, the Pecking Order Hypothesis predicts which of the​ following? A. If external financing is​ required, firms will choose to issue the riskiest security​ first, starting with debt financing and using equity as a last resort. B. Firms prefer internal financing second to external financing. C. If external financing is​ required, firms should first seek equity financing. D. 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.

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