Mathematics, 03.12.2019 19:31 wolffee895

According to the signaling theory of capital structure, firms first use common equity for their capital, then use debt if and only if they can raise no more equity on "reasonable" terms. this occurs because the use of debt financing signals to investors that the firm's managers think that the future does not look good.
a. trueb. false

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According to the signaling theory of capital structure, firms first use common equity for their capi...