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One of the indirect costs of bankruptcy is the incentive toward underinvestment. Underinvestment generally would result in: Multiple Choice 3.03 points 18 02:42:50 0 )
One of the indirect costs of bankruptcy is the incentive toward underinvestment. Underinvestment generally would result in: Multiple Choice 3.03 points 18 02:42:50 0 ) the firm turning down positivo NPV projects that would clearly be accepted if the firm were all-equity financed. 0 ) the firm accepting more projects than it would if the probability of bankruptcy was Ignored. 0 bondholders contributing the full amount of any new Investment, but both stockholders and bondholders sharing in the benefits of those investments. 0 the firm selecting all projects with positive NPVs. 0 shareholders making decisions based on the best interests of the bondholders
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