Business Studies, asked by nithwik30471, 1 year ago

The pecking order theory of capital structure implies a unique optimum capital structure.

a. true

b. false

Answers

Answered by Arslankincsem

The pecking order theory of the capital structure implies that firms prefer internal finance and firms prefer debt to equity when external finance is required.

Hence, the answer is false as there is no mention of optimum capital structure in the reference of the pecking order theory that is used by the capital structure.

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