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There is an agency relationship between bondholders and stockholders. The agency costs that arise as a result of this relationship Group of answer choices are

There is an agency relationship between bondholders and stockholders. The agency costs that arise as a result of this relationship Group of answer choices are highest for firms that have no debt.

increase as the firm uses more debt financing.

decrease as bankruptcy costs increase.

decrease as the firm uses more debt financing.

affect the present value of the debt tax shield.

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