Agency problems occur because the non-owner managers and stockholders of a firm have different interests. Propose a

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Agency problems occur because the non-owner managers and stockholders of a firm have different interests. Propose a capital structure change that might help better align these different interests.

Capital Structure
Capital structure refers to a company’s outstanding debt and equity. The capital structure is the particular combination of debt and equity used by a finance its overall operations and growth. Capital structure maximizes the market value of a...
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Fundamentals of corporate finance

ISBN: 978-0470876442

2nd Edition

Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates

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