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