Choose the scenario that represents a capital budgeting decision Should the firm borrow money from a bank or sell bonds? Should the firm shut down an unprofitable factory? Should the firm buy or lease a new machine that it is committed to acquiring? Should the firm issue preferred stock or common stock? By relating managers' compensation packages to the value of the firm, agency problems: can be reduced. will be created are shifted to other stakeholders. are eliminated entirely from the firm. Paper Mills Company elected a new board of directors to supervise the activities of the firm. So, the board of directors would be considered as a representative of top management Ostakeholders. shareholders O customers