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How do you believe information asymmetry would affect debt financing? How do you believe information asymmetry would affect equity financing? Which of the twodebt or

  1. How do you believe information asymmetry would affect debt financing?
  2. How do you believe information asymmetry would affect equity financing?
  3. Which of the twodebt or equitywould be more affected by information asymmetry and why? Explain.
  4. Do you believe such an arrangement might be better than external financial markets in reducing information asymmetry? Explain.

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