What is the pecking order

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Reference no: EM131241435

1. What is the pecking order?

(Thinking question: In a real-world firm, will a pecking order lead to a financing pyramid, in which firms tend to be financed mostly by debt [the bottom of the pyramid] and by very little equity [the top of the pyramid]?)

2. Does concern with inside information suggest that firms should issue debt or equity? Why?

Reference no: EM131241435

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