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6.7) What can companies do to reduce agency costs related to risk management? (three correct answers) A Write complete contracts with suppliers. B Give managers
6.7) What can companies do to reduce agency costs related to risk management? (three correct answers) A Write complete contracts with suppliers. B Give managers flexibility to react to market changes quickly (real options). C Reduce information asymmetry between shareholders and managers through monitoring. D Reduce dividend payments to shareholders. E Introduce strict rules for hedging. F Giving managers stable long-term employment contracts with fixed payment terms.
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