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    Exam 12: Principles of Capital Structure
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    Which Theory Proposes That Companies Follow a Hierarchy of Financing
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Which Theory Proposes That Companies Follow a Hierarchy of Financing

Question 32

Question 32

Multiple Choice

Which theory proposes that companies follow a hierarchy of financing sources?


A) Trade-off theory.
B) Reverse pecking order theory.
C) Pecking order theory.
D) Information asymmetry theory.

Correct Answer:

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