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    Principles of Finance
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    Exam 14: Capital Structure and Dividend Policy Decisions
  5. Question
    One Implication of Information Asymmetry Between Investors and Firm Managers
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One Implication of Information Asymmetry Between Investors and Firm Managers

Question 88

Question 88

True/False

One implication of information asymmetry between investors and firm managers is that if a firm raises new capital by issuing debt rather than by selling stock,it signals that the firm has very good prospects.

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