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In this paper we revisit the pecking-order theory of Myers and Majluf (1984) in a real options framework, where asymmetric information is the only contracting friction. We show that when insiders are better informed about the assets in place of the firm, relative to the new growth opportunities, equity financing can dominate (i.e., be less dilutive than) debt financing, creating a pecking (dis)order. We find that equity is more likely to dominate debt for younger firms that have largerdoi:10.2139/ssrn.2024666 fatcat:glrb65joy5eibmuncdyn5ijcsi