Suppose someone borrows from a bank to buy a new car. A few months later, the borrower

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Suppose someone borrows from a bank to buy a new car. A few months later, the borrower realizes that he will have to default on this loan in a few months, after which the bank will repossess the car. What kind of underinvestment problem might occur here?

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Principles Of Managerial Finance

ISBN: 9780136945888

16th Edition

Authors: Chad J. Zutter, Scott Smart

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