Which of the following lists presents the order of financing from most preferred to least preferred according to the pecking order theory?

Question

Quizplus · Accepted Answer

According to the pecking order theory, companies prefer financing through internal funds first, followed by debt issues and then by stock issues as a last resort. Therefore, the correct order from most preferred to least preferred would be internally generated funds, debt issue, and stock issue, which is presented in option B.

Which of the Following Lists Presents the Order of Financing