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Shareholder A and Shareholder B hold significant shares in Company X but they differ in their investment horizons. A is a pension fund, long-term investor,

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Shareholder A and Shareholder B hold significant shares in Company X but they differ in their investment horizons. A is a pension fund, long-term investor, whereas B is a hedge fund and looking for a quick return. Thus, they clash on whether dividends should be paid as cash or reinvested instead. This is an example of Type II Agency problem. True False

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