Question

The pecking order theory of capital structure rests on an assumption of

Answer 1

Answer:

In corporate finance, the pecking order theory (or pecking order model) postulates that the cost of financing increases with asymmetric information. ... Companies prioritize their sources of financing, first preferring internal financing, and then debt, lastly raising equity as a "last resort".

Answer 2

Explanation:

In corporate finance, the pecking order theory (or pecking order model) postulates that the cost of financing increases with asymmetric information.

Companies prioritize their sources of financing, first preferring internal financing, and then debt, lastly raising equity as a "last resort".