According to pecking-order theory: a. there is a direct relationship between a company's profits...

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Finance

According to pecking-order theory:

a. there is a direct relationship between a company's profits and its debt levels.

b. companies avoid external debt except as a last resort.

c. a company's capital structure is independent of its need for external funding.

d. companies stockpile internally generated cash.

e. every company has an optimal capital structure.

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