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18. Which of the following is NOT a solution of the agency problem? A. Granting managers company shares as compensation. B. Takeovers C. Proxy fights

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18. Which of the following is NOT a solution of the agency problem? A. Granting managers company shares as compensation. B. Takeovers C. Proxy fights D. Monitoring managers through auditors E. All of the above are true answers. 19. Financial ratios that evaluate whether a firm is using too much debt are known as: A. Asset management ratios. B. Long-term solvency ratios. C. liquidity ratios. D. Profitability ratios. E. Market value ratios. 20. Owners' equity amounts to $6 million and there are 10 million common shares outstanding. The firm's current stock price is $10. The market value to book value ratio will be: A 1.19 B. 2.56 C. 3.16 D. 16.67 E. None of the above

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