The pecking order theory: A company wishes to undertake a project that costs $150mm. It currently has $10mm in cash on hand and believes that it can raise $75mm in debt and $100mm in equity if needed. According to the pecking order theory of the capital structure, what per cent of the project will be financed by debt?
A) 0%
B) 26.67%
C) 50%
D) None of the above

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The Answer of The pecking order theory: A company wishes to undertake a project that costs $150mm. It currently has $10mm in cash on hand and believes that it can raise $75mm in debt and $100mm in equity if needed. According to the pecking order theory of the capital structure, what per cent of the project will be financed by debt?
A) 0%
B) 26.67%
C) 50%
D) None of the above

The Pecking Order Theory: a Company Wishes to Undertake a Project