The Pecking Order Hypothesis States That Managers Will Have a Preference

Multiple Choice

The pecking order hypothesis states that managers will have a preference to fund investment by using ________,followed by ________,and will issue ________ as a last resort.

A) debt,equity,retained earnings
B) retained earnings,equity,debt
C) retained earnings,debt,equity
D) debt,retained earnings,equity
E) equity,retained earnings,debt