Discuss the importance of the pecking order theory

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Reference no: EM131276234

1. Discuss the importance of the "pecking order" theory for managing the capital structure of a company, in terms of both short-term, tactical financing decisions and long-term, strategic decisions.

2. Comment on the following statement: "Since coupon rates on convertible debt are low relative to straight debt, convertible debt is a cheap source of financing."

Reference no: EM131276234

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