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If investors perceive the risk of investing in a company has increased, what is likely to happen to the value of the company's debt and

If investors perceive the risk of investing in a company has increased, what is likely to happen to the value of the company's debt and equity?

a) value of both will decrease

b) value of both will increase

c) value of equity will decrease, price of debt will increase

d) value of equity will increase, price of debt will decrease

Please explain why.

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