According to the pecking order theory, managers' preference for raising capital is:A.debt, internally-generated funds, public equity offerings.B.internally-generated funds, public equity offerings, debt.C.internally-generated funds, debt, public equity offerings.

According to the pecking order theory, managers' preference for raising capital is: C. internally-generated funds, debt, public equity offerings.

The pecking order theory is a financial management concept that suggests that companies prioritize their sources of financing from internal financing to equity.

Here's the step-by-step explanation:

1. Internally-generated funds: This is the first preference according to the pecking order theory. Companies prefer to finance any new projects or investments using their retained earnings or profits. This is because it's the cheapest source of finance and doesn't dilute the ownership of the existing shareholders.

2. Debt: If the internally-generated funds are not sufficient, companies prefer to borrow. This could be in the form of loans, bonds, or other debt instruments. The reason for this preference is that debt is cheaper than equity because interest payments are tax-deductible. Also, debt doesn't result in ownership dilution.

3. Public equity offerings: This is the last resort for companies according to the pecking order theory. Issuing new shares for public subscription is expensive due to issuance costs and it dilutes the ownership of existing shareholders. Therefore, companies prefer this option only when the internally-generated funds and debt are not sufficient to meet their financing needs.