Which of the following statement about the under-investment, Financial Management

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Which of the following statement about the under-investment

Which of the following statement about the under-investment problem is INCORRECT?

A) The under-investment problem arises because of the conflicts of interest between a firm’s shareholders and debt holders.

B) The under-investment problem arises because the benefits go to debt holders but shareholders must put up new funds.

C) The under-investment problem arises when the firm faces financial distress.

D) The under-investment problem refers to that the managers do not exert efforts to create valuable projects and thus invest too small.

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Financial Management: Which of the following statement about the under-investment

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Financial Management: Which of the following statement about the under-investment

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