Question: Which statement is not the implication of the pecking order theory of capital structure? O Firms with more volatile earnings should use less debt. Firms

Which statement is not the implication of the pecking order theory of capital structure?
O Firms with more volatile earnings should use less debt.
Firms prefer internal hnance to external fnance.
The issuance of stock is interpreted by investors as a negative signal.
( Firms should prefer accounts payable and accruals to retained earnings.
( Firms prefer debt to equity when external fnancing is required.

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