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For firms with free cash flows debt can be a stronger mechanism than stocks for credibly bonding managers to release cash flows to investors. equity

For firms with free cash flows

debt can be a stronger mechanism than stocks for credibly bonding managers to release cash flows to investors.

equity dividends can be a stronger mechanism than bonds for credibly bonding managers to release cash flows to investors.

preferred stock dividends can be a stronger mechanism than bonds for credibly bonding managers to release cash flows to investors.

none of the above

all of the above

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