= (a) Do you think that the creditors and the shareholders have the same concerns? More specifically,

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(a) Do you think that the creditors and the shareholders have the same concerns?

More specifically, in the event of the following:

◦ massive new investments carrying a very high risk but that will possibly lead to high returns which will enable the company to get back on its feet with a low level of profits;

◦ an increase in debt;

◦ an increase in shareholders’ equity.

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Corporate Finance Theory And Practice

ISBN: 9781118849330

4th Edition

Authors: Pierre Vernimmen, Pascal Quiry, Maurizio Dallocchio, Yann Le Fur, Antonio Salvi

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