Firms that are concerned about inside information issues (i.e., that investors infer the quality of the projects

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Firms that are concerned about inside information issues (i.e., that investors infer the quality of the projects from their behavior) should issue debt, because issuing equity would send a bad signal about the value of their projects.

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Corporate Finance An Introduction

ISBN: 9780321277992

1st Edition

Authors: Ivo Welch

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Question Posted: Oct 26, 2024 04:02 AM

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Firms that are concerned about inside information issues (i.e., that investors infer the quality of the projects

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Corporate Finance An Introduction

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