Based on asymmetric information, managers prefer to finance firms' capital structures in which order as postulated in the pecking order theory?
A. Retained earnings and internal sources.
B. External debt financing
C. Hybrid security and convertible bonds
D. New issue of equity shares.
Choose the correct order from the options given below:
1
A, D, C and B
2
A, B, C and D
3
B, C, A and D
4
C, D, A and B