The Pecking Order Theory Identifies Two Rules

Multiple Choice

The pecking order theory identifies two rules.The first rule is to

A) issue convertible debt prior to straight debt to save funds.
B) use short-term debt to its maximum available limit prior to issuing long-term debt.
C) issue new equity first in order to retain internal funds and avoid interest costs.
D) issue new debt prior to new equity.
E) use internal financing prior to external financing.