11.A firm financed with straight debt and common stock considers a new project with a NPV= -10. The project will reduce the value of the debt by 12. Should this project desired by stockholders? (Make sure to pick the most correct answer.)

Multiple Choice

• Yes

• No

• If the stockholders are also the bondholders then yes, otherwise--no.

• If the stockholders are also the bondholders then no, otherwise --yes.