Question
From Jean Tirole Theory of Corporate Finance Exercise 4.3 (full pledging). In Section 4.3.1, we claimed that it is optimal to pledge the full value
From Jean Tirole "Theory of Corporate Finance"
Exercise 4.3 (full pledging). In Section 4.3.1, we claimed that it is optimal to pledge the full value of the resale in the case of distress before committing any of the income R obtained in the absence of distress. Prove this formally
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Fundamentals Of Corporate Finance
Authors: Berk, Peter DeMarzo, Jarrad Harford
3rd Global Edition
1292018402, 9781292018409
