Home /
Expert Answers /
Finance /
thanks-a-negative-effect-of-increased-debt-on-the-capital-structure-to-control-the-agency-problem-c-pa987
(Solved): thanks! A negative effect of increased debt on the capital structure to control the agency problem c ...
thanks!
A negative effect of increased debt on the capital structure to control the agency problem can be: Select one: O to. the excessive payment of corporate taxes for the high interdut on the debt. O b. the excessive investment of managers in projects even with a low NPV. O c. that results in a very high risk aversion in management, leading to little or almost no investment in capital projects, even with positive NPVs. This would cause stagnation or little growth of the firm, O d. a wrong signal that the firm is distributing the firm's risk among more shareholders.