Firms follow the "pecking order" in their long-term financing because:
A) internally generated funds are the cheapest source of financing.
B) outsiders will know less about the company and reduce the threat of any takeover.
C) other financial strategies create more agency problems.
D) firms prefer to issue safe securities with less valuation risk first.

Question

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The Answer of Firms follow the "pecking order" in their long-term financing because:
A) internally generated funds are the cheapest source of financing.
B) outsiders will know less about the company and reduce the threat of any takeover.
C) other financial strategies create more agency problems.
D) firms prefer to issue safe securities with less valuation risk first.

Firms Follow the "Pecking Order" in Their Long-Term Financing Because