Multiple Choice
Management may expropriate wealth from bondholders to shareholders through which of the following actions:
A) take on new ventures with much greater risk than was anticipated by creditors.
B) take on more debt to increase the returns to shareholders.
C) issue more stock than was anticipated by creditors.
D) answers a and b are correct.
E) answers b and c are correct.
Correct Answer:
Verified
Correct Answer:
Verified
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