"grad-pecking-order"

"Apply pecking order theory (Myers and Majluf, 1984) to analyze how information asymmetry drives financing hierarchy decisions. Use this skill when the user needs to explain why firms prefer internal over external financing, interpret equity issuance as a negative signal, evaluate capital raising decisions, or when they ask 'why did the stock drop on the equity offering', 'should we use debt or equity', or 'why do…