Which of the Following Is an Implication Drawn from the Pecking

Which of the following is an implication drawn from the pecking order theory:

A) Internal financing is a last resort due to shareholders' desire for current income.
B) Debt financing is a last resort due to the large direct and indirect bankruptcy costs associated with this form of financing.
C) Due to high information costs associated with riskier securities,companies will only issue equity as a last resort.
D) Managers have no preference about the form of financing they employ.

Correct Answer:

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