Pecking Order Theory
Some Implications:
‹Internal equity may be better than external
equity.
‹Financial slack is valuable.
‹If external capital is required, debt is better.
(There is less room for difference in opinions
about what debt is worth).
Pecking Order Theory
Some Implications:
‹Internal equity may be better than external
equity.
‹Financial slack is valuable.
‹If external capital is required, debt is better.
(There is less room for difference in opinions
about what debt is worth).