Shareholders Sometimes Pursue Selfish Strategies When Financial Distress Is Present

Multiple Choice

Shareholders sometimes pursue selfish strategies when financial distress is present.These actions generally result in:

A) no action by debtholders since these are shareholder concerns.
B) agency costs to bondholders.
C) investments with risks similar to those of the current firm.
D) undertaking scale-enhancing projects.
E) lower agency costs,as shareholders have more control over the firm's assets.