(c): Indicate whether the following statements are true or false:

[1 point for each statement for a total of 8 points]

(i): Equity-holders of Firm A have an incentive to undertake project X.

(ii): Equity-holders of Firm A have no incentive to undertake project Y.

(iii): Debt-holders of Firm A are worse off if the management decides to undertake project X.

(iv): Debt-holders of Firm A are worse off if the management decides to undertake project Y.

(v): Equity-holders of Firm B have an incentive to undertake project X.

(vi): Equity-holders of Firm B have no incentive to undertake project Y.

(vii): Debt-holders of Firm B are worse off if the management decides to undertake project X.

(viii): Debt-holders of Firm B are worse off if the management decides to undertake project Y.