Question: 5-1. If the Project initial cost, C, is $150 which is financed by debt, which project will be chosen by stockholders? If the Project initial

5-1. If the Project initial cost, C, is $150 which is financed by debt, which project will be chosen by stockholders? If the

5-1. If the Project initial cost, C, is $150 which is financed by debt, which project will be chosen by stockholders? If the Project initial cost, C, is over 1 I which is financed by debt, the riskier project will be chosen by stockholders. Fill in the blank. With increasing debt, shareholders often have incentives to take riskier projects over safe projects. This problem is referred as

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