To reduce agency costs, issuing debt instead of equity provides incentives for managers to run a firm efficiently because ________
A) debt increases the funds available to managers to run the firm
B) ownership of managers may remain more concentrated
C) managers may take actions that benefit shareholders but harm creditors and lower the value of the firm
D) shareholders prefer to decline new projects to save cash, even if their NPVs are positive
Answer: B
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Kate is coaching members of her field sales team to help them understand how they spend their time and how they might increase their productivity. She is using ________ to provide them with feedback
A) time-and-duty analysis B) a sales quota C) a feed-forward approach D) an expense allowance E) a norm for prospect calls
Uninsured motorists' coverage pays only for property damage
Indicate whether the statement is true or false