15. Agency costs (S17-2) The Salad Oil Storage (SOS) Company has financed a large part of its...
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15. Agency costs (S17-2) The Salad Oil Storage (SOS) Company has financed a large part of its facilities with long-term debt. There is a significant risk of default, but the company is not on the ropes yet. Explain:
a. Why SOS stockholders could lose by investing in a positive-NPV project financed by an equity issue.
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Related Book For
Principles Of Corporate Finance
ISBN: 9781264080946
14th Edition
Authors: Richard Brealey, Stewart Myers, Franklin Allen, Alex Edmans
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