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Which of the following statements best describe how capital structure can affect the firm through underinvestment? Firms close to bankruptcy will find it difficult to
Which of the following statements best describe how capital structure can affect the firm through underinvestment? Firms close to bankruptcy will find it difficult to fund positive NPV projects from new shareholders because the potential shareholders will require a substantial discount Underinvestment can occur when gains from a positive NPV project accrue mostly to shareholders when the firm is close to bankruptcy. None of the other statements is correct. O More than one of the other statements is correct. Firms ce to bankruptcy will pass on positive NPV projects because no one will be willing to fund them
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