What Is the Key Issue for Lenders in Relation to the Agency

Multiple Choice

What is the key issue for lenders in relation to the agency problem?

A) Is the dividend payment being used as a signal intended to increase share prices?
B) Are excessively low dividends being used to keep money out of the reach of lenders?
C) Is the dividend payment being used as a signal intended to decrease share prices?
D) Are excessively high dividends being used to keep money out of the reach of lenders?