Problem

In Section 18-3, we briefly referred to three games: Playing for time, cash in and run, an...

In Section 18-3, we briefly referred to three games: Playing for time, cash in and run, and bait and switch.

   For each game, construct a simple numerical example (like the example for the riskshifting game) showing how shareholders can gain at the expense of creditors. Then explain how the temptation to play these games could lead to costs of financial distress.

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Solutions For Problems in Chapter 18