QUESTION 16 We would expect an activist shareholder to remove antitakeover measures that protect a company's managers. cut funding to projects that benefit managers but no shareholders. all of the above QUESTION 17 Debt can reduce agency costs between shareholders and management, but excessive debt can create its own agency conflicts. only to the extent that the firm can commit all of its free cash flow. only when the company is young with limited cash reserves. QUESTION 18 Investment mostly represents the sale and purchase of foreign financial assets that involve a transfer of control Portfolio Foreign direct Indirect