uiz $($LO$1)($LO$2)($LO$3)($LO$4)-20$ points

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Sove $8$ Exit

According to the pecking order theory of capital structure, why do firms avoid issuing equity?

Multiple Choice

Because fees associated with issuing new equity are so high

Because they want to avoid dilution of earnings per share

Because they do not want to commit to paying dividends on the new equity

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