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Assume a firm takes on a new project that is much riskier than the firm's existing projects. Which party disproportionately bears this new risk? Multiple
Assume a firm takes on a new project that is much riskier than the firm's existing projects. Which party disproportionately bears this new risk?
Multiple choice question.
Common stockholders
Preferred stockholders
Parties who financed the new project
Bondholders
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