Trade off theory and pecking order theory

Assignment Help Finance Basics

Reference no: EM1343808

Several theories are proposed to explain how companies deal with debt and financial distress.

QUESTIONS:

1. Compare and contrast trade-off theory and pecking-order theory.

2. Describe a specific business that seems to follow trade-off theory and another that follows pecking-order theory.

3. Why would these theories be more applicable in some industries than others?

Please include references

Reference no: EM1343808

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