When Faced with Financial Distress, Managers of Firms Acting on Behalf

Multiple Choice

When faced with financial distress, managers of firms acting on behalf of their shareholders' interests will tend to:
I.favor high-risk, high-return projects even if they have negative NPV;
II.refuse to invest in low-risk, low-return projects with positive NPVs;
III.delay the onset of bankruptcy as long as they can

A) I only
B) II only
C) III only
D) I, II, and III