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valputin valputin
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8 years ago
Equity contracts account for a small fraction of external funds raised by American businesses because
A) equity contracts do not permit borrowing firms to raise additional funds by issuing debt.
B) costly state verification makes the equity contract less desirable than the debt contract.
C) of the reduced scope for moral hazard problems under equity contracts, as compared to debt contracts.
D) there is no moral hazard problem when using a debt contract.
Textbook 
The Economics of Money, Banking and Financial Markets, Business School Edition

The Economics of Money, Banking and Financial Markets, Business School Edition


Edition: 4th
Author:
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Our course uses > The Economics of Money, Banking and Financial Markets
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MeelaMeela
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8 years ago
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valputin Author
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#2
8 years ago
Correct
Our course uses > The Economics of Money, Banking and Financial Markets
wrote...
#3
8 years ago
Slight Smile Good luck with the rest
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