Question: Question 45 (2 point According to pecking order theory managers will often choose to finance with Just enough debt to get to the point where

Question 45 (2 point According to pecking order theory managers will

Question 45 (2 point According to pecking order theory managers will often choose to finance with Just enough debt to get to the point where the value o additional interest tax shields I just oftset by additional costs of possible financial distress debt rather than new equity, to avoid reduced share price, new equity rather than debt; to strengthen EPS new equity rather than debt, due to bankruptcy costs, debt rather than retained earnings, to lower the WACC

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