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Which of the following statements accurately describe the link between the asset substitution problem and the decision about how much debt should be issued? Firms

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Which of the following statements accurately describe the link between the "asset substitution problem and the decision about how much debt should be issued? Firms are limited in how much debt they can issue because debtholders are concerned about firm's rejecting positive NPV projects. None of the other statements accurately describe the link between the underinvestment problem and the decision about how much debt should be issued. Firms are limited in how much debt they can issue because debtholders are concerned that firms might replace less risky existing projects with more risky new projects to enhance shareholder value. The tax deductibility of interest can increase the value of the firm's assets as leverage increases. More than one of the other statements accurately describe the link between the underinvestment problem and the decision about how much debt should be issued

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