Which of the following statements is most correct?

Select one:

O a. Managerial compensation cannot be structured to reduce agency problems between

stockholders and managers.

O b. One of the ways in which firms can mitigate or reduce agency problems between

bondholders and stockholders is by increasing the amount of debt in the capital structure.

O c. The threat of takeover is one way in which the agency problem between stockholders and

managers can be alleviated.

O d. Management is not involved in the stockholders vs creditors agency relationship