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If a firm changes some of the manager's cash salary to share options of the firm, then the agency problem between the manager and the

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"If a firm changes some of the manager's cash salary to share options of the firm, then the agency problem between the manager and the shareholders of the firm will be reduced, whereby the shareholders will always be better off." Is this statement correct? Explain. (2.5 marks) 1 A - BI iii C

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