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Assume that financial distress costs are the only source of market frictions. We expect the following market responses when a firm unexpectedly announces issuance of
Assume that financial distress costs are the only source of market frictions. We expect the following market responses when a firm unexpectedly announces issuance of convertible contingent bonds: Mark the alternative you consider to be most correct: There is not sufficient information provided to determine the impact Stock return =0 and CDS spread change =0 O Stock return 0 O Stock return 0 and CDS spread change 0 and CDS spread change >0
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