Which of the following statements regarding the agency problem is most TRUE? Pick the answer...

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Which of the following statements regarding the agency problem is most TRUE? Pick the answer which fits best. OC O a Agency costs are directly observable in the stock market. Ob. A corporate expenditure that benefits shareholders but harms the management is considered an agency cost An agency problem exists when a conflict arises when people are entrusted to look after the interests of others and may use the authority or power to their own benefit Od An agency problem exists when there is a conflict of interest between two agents. Oe. An agency problem does not exist when there is a conflict of interest between the bondholders and the stockholders

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