Why would management want to increase the riskiness of the firm? Why would this make bondholders unhappy?

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Why would management want to increase the riskiness of the firm?

Why would this make bondholders unhappy?

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Intermediate Financial Management

ISBN: 9781337395083

13th Edition

Authors: Eugene F. Brigham, Phillip R. Daves

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Question Posted: Mar 10, 2024 12:02 AM

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Why would management want to increase the riskiness of the firm? Why would this make bondholders unhappy?

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Management may seek to increase the riskiness of the firm for several reasons To Pursue Growth Opportunities Taking on more risk can potentially lead ...View the full answer

Intermediate Financial Management

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