Which of the following is not an example of a Principal/Agent relationship? A. Student/Professor. B....
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Accounting
Which of the following is not an example of a Principal/Agent relationship?
A. Student/Professor.
B. Debt Holder/Equity Holder.
C. Equity Holder/Management.
D. Management/Debt Holder.
The amount of debt that a firm can take on is affected by
A. the Principal/Agent relationship between debt and equity investors.
B. covenants in the debt instruments.
C. market risk.
D. all of the above.
The tax deductibility of interest results in a higher cost of capital for the firm. True/False
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