The pecking order refers to the:
A) absolute priority rule.
B) seniority of claims in the event of a bankruptcy.
C) ranked preference of financial managers in sources of new capital.

Question

Quizplus · Accepted Answer

The pecking order theory suggests that companies prioritize their sources of financing (from internal financing to equity) according to the principle of least effort, or least resistance, preferring to raise equity as a last resort.

The Pecking Order Refers to The