Based on historical experience,which of the following best describes the "pecking order" of long-term financing strategy in Europe?
A)Long-term debt first,new ordinary equity,internal financing last.
B)Long-term debt first,internal financing,new ordinary equity last.
C)Internal financing first,new ordinary equity,long-term borrowing last.
D)Internal financing first,long-term borrowing,new ordinary equity last.
E)None of the above.

Question

Quizplus · Accepted Answer

Historically, European firms prefer to use internal financing first, then long-term borrowing, and consider issuing new ordinary equity as a last resort due to the higher costs and dilution of control associated with equity issuance.

Based on Historical Experience,which of the Following Best Describes the "Pecking