Questiona explain what the debt overhang problem is, Ask an Expert

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a. Explain what the debt overhang problem is (following the lines of Myers 1977) make sure that you specify what the relevant conflict of interest is and what are the key necessary conditions for this problem to happen?

b. Explain the "asset substitution" effect. Again make sure that you clarify which agents are in conflict and the necessary conditions for the problem to happen.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M9589752

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