Agency Issues. When a companys stock is widely held, it may not pay an individual shareholder to

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Agency Issues. When a company’s stock is widely held, it may not pay an individual shareholder to spend time monitoring the manager’s performance and trying to replace poor management.

Explain why. Do you think that a bank that has made a large loan to the company is in a different position?

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Study Guide To Accompany Fundamentals Of Corporate Finance

ISBN: 9780073012421

5th Edition

Authors: Richard Brealey, Stewart Myers, Alan Marcus

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