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Which one is not a result for having agency cost of debt? A. Firm always prefer borrowing money. B. Debt overhang problem, distorts incentive to

Which one is not a result for having agency cost of debt? A. Firm always prefer borrowing money. B. Debt overhang problem, distorts incentive to invest. C. Risk-shifting problem, riskier projects with lower NPV can be chosen. D. Firm doesn't have 100% debt to capital ratio as predicted by Modigliani & Miller Theorem (with Corporate Taxes).

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