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Faced with financial distress, which of the following may a firm do to transfer wealth from bondholders to stock holders? I. Take a risky project

Faced with financial distress, which of the following may a firm do to transfer wealth from bondholders to stock holders? I. Take a risky project II. Borrow new debt to pay off existing debt III. Issue new equity I only II only III only I and II Only II and III Only

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