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Express the position of a debt holder in terms of put options. Build your answers on part (a) of this question, use option theory to
- Express the position of a debt holder in terms of put options.
- Build your answers on part (a) of this question, use option theory to explain the debt-overhang problem, or, how managers could decide to forgo projects with positive NPVs when the firm has a high level of financial leverage. (Word limit: 100)
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Principles Of Managerial Finance
Authors: Chad J. Zutter, Scott Smart
16th Edition
0136945880, 978-0136945888
