What is the asymmetric information concept

Reference no: EM131337031

1. What is the asymmetric information concept? What role does this concept play in a company's decision to change its financial structure or issue new securities?

2. According to the pecking order theory, if additional external financing is required, what type of securities should a firm issue first? Last?

3. Explain why, according to the pecking order theory, firms prefer internal financing to external financing.

Reference no: EM131337031

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