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The pecking order theory of capital structure implies that: I) Risky firms will end up borrowing more II) Firms prefer internal finance III) Firms prefer debt to equity when external financing is required A

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The pecking order theory of capital structure implies that:

I) Risky firms will end up borrowing more

II) Firms prefer internal finance

III) Firms prefer debt to equity when external financing is required

A. I only

B. II only

C. II and III only

D. III only