Which statement is NOT correct regarding the agency problem? Agency costs arise from agency problems. In shareholders/managers agency relation, shareholders are the principal and managers are the agents. Agency problems arise when agents place personal goals ahead of the goals of the principal. Shareholders/Managers agency problem still exists if the firm's manager owns 100 percent of the firm's common stock. Question 18 (4 points) Expected free cash flow for next period is $100 million. Expected constant growth rate is 2%. WACC is 6%. What is the value of operation? $3,000 million $2,100 million $2,800 million $2,500 million