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What are some of the possible consequences of financial distress? Question 23 options: Debtholders, who face the prospect of getting only part of their money
What are some of the possible consequences of financial distress?
Question 23 options:
| Debtholders, who face the prospect of getting only part of their money back, are likely to want the company to take additional risks. |
| Debtholders would like equity holders to put up more money, even if it is invested in zero-NPV projects. |
| Equity investors would like the company to cut its dividend payments to conserve cash. |
| Equity investors would like the firm to shift toward less risky lines of business. |
| None of the above. |
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