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2. Conceptual questions (15p) (a) Why do shareholders of a widely held firm unanimously agree on the NPV rule? (b) Why do old shareholders capture

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2. Conceptual questions (15p) (a) Why do shareholders of a widely held firm unanimously agree on the NPV rule? (b) Why do old shareholders capture the surplus in transactions between the firm and the capital market? (c) What do economists mean when they refer to the separation of corporate investment and financing decisions

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