Question: Jensen ( 1 9 8 6 ) suggests leverage increases value to shareholders by: Question 1 2 options: Allowing wealth transfers from bondholders to shareholders

Jensen (1986) suggests leverage increases value to shareholders by:
Question 12 options:
Allowing wealth transfers from bondholders to shareholders
Bonding managers to pay out free cash flows
Increasing the legal rights of stakeholders over managers
Both a and b
Both b and c

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