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A company is at risk of bankruptcy and its share price is close to 0 and its bonds are trading only at half of face

A company is at risk of bankruptcy and its share price is close to 0 and its bonds are trading only at half of face value. The CEO of the company asks you for advice whether you think that it will find investors for a SEO to raise additional equity? What will you say? How is your answer related to the concept of residual claimant, which is a term often used to explain a key feature of equity.

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