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Which one of the following actions by a financial manager creates an agency problem? agreeing to pay out excess cash to shareholders. refusing to borrow
Which one of the following actions by a financial manager creates an agency problem?
agreeing to pay out excess cash to shareholders.
refusing to borrow money when doing so will create losses for the firm.
refusing to lower selling prices if doing so will reduce the net profits.
agreeing to expand the company at the expense of stockholders' value.
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