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    Contemporary Financial Management Study Set 1
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    Exam 13: Capital Structure Concepts
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    A Survey of Fortune 500 Firms Indicate That They Prefer
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A Survey of Fortune 500 Firms Indicate That They Prefer

Question 1

Question 1

Multiple Choice

A survey of Fortune 500 firms indicate that they prefer internal financing (retained earnings) to external financing.This preference is known as .


A) financial slack
B) the pecking order theory
C) capital structure theory
D) asymmetric capital

Correct Answer:

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