The
pecking order theory states that companies prioritize their sources of
financing (from internal financing to equity) and consider equity financing as
a last resort. Internal funds are used first, and when they are depleted, debt
is issued.
The
pecking order theory states that companies prioritize their sources of
financing (from internal financing to equity) and consider equity financing as
a last resort. Internal funds are used first, and when they are depleted, debt
is issued.
Pigouvian tax: It is a tax levied on any market activities that generates negative externalities. This tax objective is to correct an inef...