Subject : Corporate Finance Theory

Please provide me answers with details that is based on the corporate finance theories

• Question do not require a quantitative analysis or a numerical example

Answer the following two questions: With debtor in possession (DIP) financing, the bankrupt firm can obtain additional amounts of debt senior to the firms existing debt. Explain how the firms existing debtholders can benefit from this. Would debtholder-equityholder conflicts be more severe for firms that borrow short term than long term? Explain why.