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Suppose managers of a firm know that the company is approaching financial distress. Should the managers borrow from creditors and issue a large one-time dividend
Suppose managers of a firm know that the company is approaching financial distress. Should the managers borrow from creditors and issue a large one-time dividend to shareholders? How might creditors control this potential transfer of wealth? Use at least one argument in supporting and one argument rebutting your overall decision, and make sure to include concepts discussed in class in your answer.
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