QUESTION 4 4.55 Consider a financially distressed firm whose shareholders have no incentive to take...
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QUESTION 4 4.55 Consider a financially distressed firm whose shareholders have no incentive to take on a low-risk project, even though the project would increase firm value (it has a positive NPV). This is an example of: Agency costs of equity Direct costs of financial distress Milking the property Underinvestment
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