Question
Debt can be used to constrain managers because it: A. Provides additional cash flow for their use. B. Commits a firm's excess cash flow to
Debt can be used to constrain managers because it:
A. Provides additional cash flow for their use.
B. Commits a firm's excess cash flow to debt payment.
C. Allows the management to issue more shares.
D. Eliminates a CEO's tendency to acquire other firms without a sound economic rationale.
E. Makesa CEO more likely to accept positive NPV projects.
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Personal Finance
Authors: Jack R. Kapoor, Les R. Dlabay, Robert J. Hughes, Melissa Hart
12th edition
1259720683, 978-1259720680
