Question
Part a. Debt finance is considered to be a solution to encourage managers to distribute excess cash to investors rather than investing in sub-optimal projects.
Part a.
"Debt finance is considered to be a solution to encourage managers to distribute excess cash to investors rather than investing in sub-optimal projects". Do you agree with this statement? Explain your answer.
( 6 marks)
500 words
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International Finance Discussion Papers A Framework For Economic Forecasting
Authors: United States Federal Reserve Board, Neil R. Ericsson, Jaime Marquez
1st Edition
1288733585, 9781288733583
