Which of the following statements is most correct?

Select one:

a. The threat of takeover is one way in which the agency problem between stockholders and managers can be

alleviated.

b.

Managerial compensation cannot be structured to reduce agency problems between stockholders and

managers.

C.

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.

d

Management is not Involved in the stockholders vs creditors agency relatlonship