2. Is the company being paid for taking these risks? Managers are not paid to avoid all...
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2. Is the company being paid for taking these risks? Managers are not paid to avoid all risks, but if they can reduce their exposure to risks for which there are no corresponding rewards, they can afford to place larger bets when the odds are stacked in their favor.
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Principles Of Corporate Finance
ISBN: 9781264080946
14th Edition
Authors: Richard Brealey, Stewart Myers, Franklin Allen, Alex Edmans
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