According to pecking-order theory

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Reference no: EM131130907

Which one of the following is correct according to pecking-order theory?

A. There is a direct relationship between a firm’s profit and its debt levels.

B. Firms avoid external debt except as a last resort.

C. A firm’s capital structure is independent of its need for external funding.

D. Firms stockpile internally generated cash.

E. There is an optimal capital structure for every firm.

Reference no: EM131130907

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