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Which one of the following statements describe how pooling equilibrium and separation equilibrium are related to costly signaling in corporate finance a) High debt ratio
Which one of the following statements describe how pooling equilibrium and separation equilibrium are related to costly signaling in corporate finance
a) High debt ratio is beneficial for high quality firm
b) Under pooling equilibrium high and low quality firms are correctly priced
c) Separation equilibrium is achieved when information is asymmetrically distributed
d) For high quality firm costly signaling is harmful since it decreases its value
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