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In 'bait-and-switch,' the firm borrows money, then sells its relatively safe assets and invests the proceeds in assets for a large new project that is
In 'bait-and-switch,' the firm borrows money, then sells its relatively safe assets and invests the proceeds in assets for a large new project that is far riskier. If the risky project is successful, most of the benefits go to the bondholders. However, if the project is unsuccessful, the shareholders take a loss." True or False?
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