Dernham Inc.'s optimal capital structure calls for the firm to have 20% debt and 80% equity financing. The firm's board of directors has decided to include only 10% debt in the firm's capital structure. The reason for using less than the optimal amount of debt is that the board wants to ensure they can borrow at a reasonable rate if a good investment opportunity arises. The board's decision will help to align management's interests with the shareholders' interests. The board's decision will give management an opportunity to make decisions that may not be in the shareholders' best interest. The firm's amount of debt will not have an effect on the relationship between managers and shareholders