Question: Shareholders sometimes pursue selfish strategies such as taking large risks or paying excessive dividends. These actions generally result in: O no action by debtholders

Shareholders sometimes pursue selfish strategies such as taking large risks or paying

Shareholders sometimes pursue selfish strategies such as taking large risks or paying excessive dividends. These actions generally result in: O no action by debtholders since these are shareholder concerns. O agency costs to bondholders. O investments with risks similar to those of the current firm. O undertaking scale-enhancing projects. O lower agency costs, as shareholders have more control over the firm's assets.

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