Which of the Following Statements Is Most Correct

Multiple Choice

Which of the following statements is most correct?

A) One of the ways in which firms can mitigate or reduce agency problems between bondholders and stockholders is by increasing the amount of debt in the capital structure.
B) The threat of takeover is one way in which the agency problem between stockholders and managers can be alleviated.
C) Managerial compensation can be structured to reduce agency problems between stockholders and managers.
D) Statements b and c are correct.
E) All of the statements above are correct.