Explain about pecking order theory

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Pecking Order Theory

Alpha Corp. and Beta Corp. both produce turbo encabulators. Both company's assets and operations are growing at the same rate, and their annual capital expenditures are about the same. Thus, Alpha Corp. is the more efficient producer and is consistently more profitable. According to thetheory, find which company should have the higher debt ratio? Explain.

Reference no: EM1347253

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