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1. Would a firm that has followed only a pecking order after its IPO in its capital-issuing decision end up with more debt than equity in its capital structure?

2. Explain the difference between the financing pyramid and the pecking order. Which leads to which?

3. Empirically, do managers seem to act as if they believe that they can time the overall stock market (not just their own stock)? Are they doing so successfully?

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