which of the following is CORRECT about agency costs? ( Single Choice) Answer 1: debt...

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Finance

which of the following is CORRECT about agency costs? ( Single Choice) Answer 1: debt is always more favorable than equity considering all sorts of agency issues Answer 2: debt can mitigate the underinvestment issue Answer 3: debt can mitigate the empire building issue Answer 4: when risk-shifting issue is severe, firms should turn to debt financing instead of using equity

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