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Dear sir,
1. I think the Pecking order theory is applicable for those companies which have already raised their capital and want to raise further capital as it starts with retained earnings.
2. The Pecking Order Theory does not meet the creditors hierarchy i.e., the most risky is share capital, followed by preferences shares, unsecured creditors and then at the end the secured creditors? or does it meet?
You comments needed.
Thanks,
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