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Faced with financial distress, which of the following may a firm do to transfer wealth from bondholders to stock holders? 1. Pay out a large

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Faced with financial distress, which of the following may a firm do to transfer wealth from bondholders to stock holders? 1. Pay out a large dividend II. Take high risk projects III. Issue new equity O I only O ll only III only I and II Only O II and III Only

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