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In the conflicts between equity holders and bond holders, Why would equity investors want to forego good project with positive NPV (debt overhang) and rather

  1. In the conflicts between equity holders and bond holders,
    1. Why would equity investors want to forego good project with positive NPV (debt overhang) and rather take risky projects with negative NPV? (risk shifting)
    2. What is an example of asset stripping from equity holders in case of high financial distress?

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