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3. A firm can reduce agency problems with shareholder and bond holders by a.Maximizing managers stock option plans b.Using protective covenants c.Increasing the total number

3. A firm can reduce agency problems with shareholder and bond holders by

a.Maximizing managers stock option plans

b.Using protective covenants

c.Increasing the total number of share holders

d.Financing risky projects with additional debt

e.Increasing the likelihood of hostile takeovers.

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