Question 3 4 points Save Answer (4 points) The following market imperfections (deviations from the assumptions of perfect capital markets) provide reasons why shareholders of an all-equity firm may gain if the firm issues debt at fair market prices and uses the proceeds to repurchase its own stock: a. Market participants know that managers will engage in value-destroying risk-shifting if they have the opportunity to do so. b. Positive personal taxes on dividend income. c. An agency problem leads managers to waste excess cash ("free cash flow problem"). d. (a), (b), and (c) O e. (a) and (b) Of. (a) and (c) g. (b) and (c) Oh. None of the above