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Which of the following actions would be most likely to reduce potential conflicts of interest between stockholders and bondholders? The threat of hostile takeovers. Abolishing

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Which of the following actions would be most likely to reduce potential conflicts of interest between stockholders and bondholders? The threat of hostile takeovers. Abolishing the Security and Exchange Commission. Compensating managers with stock options. The use of covenants in bond agreements that limit the firm's use of additional debt and constrain managers actions. Financing risky projects with additional debt

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