The pecking order states how financing should be raised .
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4.

The pecking order states how financing should be raised. In order to avoid asymmetric information problems and misinterpretation of whether management is

sending a signal on security overvaluation, the firm's first rule is to: A) finance with internally generated funds as there is no market interaction. B) always issue debt then the market would not know when management thinks the security is overvalued. C) reduce asymmetry before any investment. D) increase the financial slack to reduce the reliance on internally generated funds. E) none of the above.
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Subject: Business, Finance

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