While debt can reduce agency costs between shareholders and management: a. excessive debt may also induce the risk-averse managers to engage in extra risky investment projects, causing an underinvestment problem.
b. with debt financing, companies cannot misuse debt to finance corporate empire building.
c. none of the options
d. excessive debt may also induce the risk-averse managers to forgo profitable but risky investment projects, causing an underinvestment problem.
e. Additionally, with debt financing, companies can misuse debt to finance corporate empire building.

Acompany that makes shopping carts for supermarkets and other stores recently purchased some new equipment that reduces the labor content of the jobs needed to produce the shopping carts. prior to buying the new equipment, the company used 6 workers, who produced an average of 79 carts per hour. workers receive $16 per hour, and machine coast was $49 per hour. with the new equipment, it was possible to transfer one of the workers to another department, and equipment cost increased by $11 per hour while output increased by four carts per hour. a) compute the multifactor productivity (mfp) (labor plus equipment) under the prior to buying the new equipment. the mfp (carts/$) = (round to 4 decimal places). b) compute the productivity changes between the prior to and after buying the new equipment. the productivity growth = % (round to 2 decimal places)

If you miss two payments on a credit card what is generally the penalty

How has internet access changed and affected globalization from 2003 to 2013? a ten percent increase in internet access has had little effect on globalization. a twenty percent decrease in internet access has had little effect on globalization. a thirty percent increase in internet access has sped up globalization. a fifty percent decrease in internet access has slowed down globalization.