Alpha Coip, and Beta Corp. both produce turbo encabulators. Both companies' assets and operations are growing at

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Alpha Coip, and Beta Corp. both produce turbo encabulators. Both companies' assets and operations are growing at the same rate, and their annual capital expenditures are about the same. However, Alpha Corp. is the more efficient producer and is consistently more profitable. According to the pecking order theory, which company should have the higher debt ratio?
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Fundamentals of Corporate Finance

ISBN: 978-0077861629

8th edition

Authors: Richard Brealey, Stewart Myers, Alan Marcus

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