Your author identifies the ________ model of capital structure as one that describes the order in which firms typically raise capital.
A)step
B)internal-external
C)queuing
D)pecking-order

Question

Quizplus · Accepted Answer

The pecking-order model of capital structure posits that firms have a preferred order in which they raise capital, with internal financing being the first choice and external financing being the last resort. This model is based on the idea that financing costs and asymmetric information create a hierarchy of financing sources that firms prefer to use.

Your Author Identifies the ________ Model of Capital Structure as One