Financial theory suggests and empirical evidence supports the idea tha

Financial theory suggests and empirical evidence supports the idea that firms have a”pecking order” by which they choose to raise funds to finance assets. From the first source of financing to the last this pecking order is:

A) internally generated funds, debt, and new equity.
B) debt, internally generated funds, and equity.
C) equity, debt, and internally generated funds.
D) None of the above, there is no such preference.

ANSWER

A