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Shareholders sometimes pursue selfish strategies such as taking large risks or paying excessive dividends. These actions generally result in: O no action by debtholders

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Shareholders sometimes pursue selfish strategies such as taking large risks or paying excessive dividends. These actions generally result in: O no action by debtholders since these are shareholder concerns. O agency costs to bondholders. O investments with risks similar to those of the current firm. O undertaking scale-enhancing projects. O lower agency costs, as shareholders have more control over the firm's assets.

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