The firm borrows an additional $1 million on a short-term basis and uses the money to repay long-term debt. How does this transaction affect the firm's Asset side and Liabilities side of balance sheet? 3 How agency conflict arise between stock holders versus managers and stock holders versus creditors. What measure should take to resolve these conflicts? 4 What are the advantages and disadvantages of issuing callable and putable bonds for issuers? 4 Indentify characteristics of companies for which the constant growth or multistage dividend discount model is appropriate. 4