Generally, Managers of Corporations Prefer Internally Generated Cash to Finance

Multiple Choice

Generally, managers of corporations prefer internally generated cash to finance their capital expenditures because:
I. They can avoid the discipline of the financial markets
II. The costs of issuing new securities are high
III. The announcement of new equity issue is usually bad news for investors

A) I only
B) II only
C) II and III only
D) I, II, and III