Question
1 . Under the pecking Order Theory of finance, a company will get funds to finance a project in the order
of:
- Internally-generated funds, stretch net working capital, borrow from bank, public debt, common stock, preferred stock
- Internally-generated funds, stretch net working capital, borrow from bank, common stock, preferred stock, public debt
- Internally-generated funds, stretch net working capital, public debt, borrow from bank, common stock, preferred stock
- Internally-generated funds, stretch net working capital, borrow from bank, public debt, preferred stock, common stock,
- None of the other answer
2 . The goal of finance is to maximize shareholder weah, and the dividend policy that goal is
- Constant dividend policy
- Dividend smoothing policy
- Stable dividend policy
- Residual dividend policy
- None of the other answers.
3 . A company will institute a stock repurchase for any of the following reasons EXCEPT
Finance
