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    Introduction to Corporate Finance Study Set 3
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    Exam 21: Capital Structure Decisions
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    Explain the Importance of Debt in Minimizing the Agency Cost
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Explain the Importance of Debt in Minimizing the Agency Cost

Question 7

Question 7

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Explain the importance of debt in minimizing the agency cost problem between the managers and the shareholders.

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Managers have the tendency to pursue the...

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