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Question 3 Which of the following actions would be most likely to reduce potential conflicts between stectheiders and bondheidersi? Including restrictive covenants in the company's
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Which of the following actions would be most likely to reduce potential conflicts between stectheiders and bondheidersi?
Including restrictive covenants in the company's bond indenture which is the centract between the company and its bondholders
Compensating managers with more stock options and less cash income.
The passage of laws that make it harder for hostile takeovers to succeed.
A government regulation that banned the use of convertible bonds.
The firm begins to use only longterm debt, eg debt that matures in years or more, rather than debt that matures in less than one year.
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