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1 Consider agency costs of debt. Describe three selfish strategies by the owner-manager when a firm faces financial distress. 2 Consider agency costs of equity.

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1 Consider agency costs of debt. Describe three selfish strategies by the owner-manager when a firm faces financial distress. 2 Consider agency costs of equity. Describe the free cash flow hypothesis. 3 Describe the pecking-order theory of capital structure

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