Multiple Choice Which of the following statements about agency conflicts is

Multiple choice which of the following statements

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Question 3 (6 points, Multiple Choice):Which of the following statements about agency conflicts is false. a.Risk shifting refers to a manager’s ability to dilute the value of debt claims by increasingthe risk of the operations.b.Debt overhang describes a situation in which a firm cannot raise funds through juniorclaims to invest into positive NPV projects.c.Debtholders are worried about wealth transfers that distribute large amounts toshareholders.d.The Freecashflow problem arises if a firm has borrowed too much and becomes unableto service promised interest payments. Question 4 (6 points, Multiple Choice):Which of the following statements is correct? Verspreiden niet toegestaan | Gedownload door Jeffrey de Jong ([email protected]) lOMoARcPSD|106069
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3 Question 5 (6 points, Multiple Choice):Which of the following is not an advantage for firms deciding to list their equity publicly? Question 6 (6 points, Multiple Choice):Which statement about the price of a callable bond is correct? Question 7 (6 points, Multiple Choice):Which of the following lease statements is false? a.A salestype lease is offered by the manufacturer of an asset and often bundled withmaintenance services.b.A leveraged lease is a lease in which the lessor borrows funds to purchase the asset.c.A sale and leaseback contract is a transaction in which a firm sells an asset just to leaseit back.d. A synthetic lease replicates lease payments of an asset with derivative securities.
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