Which of the following statements regarding the use of the pecking order theory is true?
Which of the following statements regarding the use of the pecking order theory is true?
A. In pecking theory, internal financing is superior to debt which is superior to selling more equity.
B. Some academics have demonstrated that pecking theory fails when applied to small firms.
C. All of these answers.
D. The pecking order theory argues that when a company sells its shares, that is a negative signal.