The Pecking-Order Theory
{"Image DocumentName": "The Pecking-Order Theory", "Image ImageDescription": "Theory stating that firms prefer to issue debt rather than equity if internal financing is insufficient. Rule 1. Use internal financing first. Rule 2. Issue debt next, new equity last. The pecking-order theory is at odds with the tradeoff theory: There is no target D/E ratio. Profitable firms use less debt. Companies like financial slack.", "Image XResolution": "37", "Image YResolution": "37", "Image ResolutionUnit": "Pixels/Centimeter", "Image Software": "SlidePlayer", "Image YCbCrPositioning": "Centered"}