You have been given the following information:

I) no action by debtholders since these are equity holders concerns;

II) increasing the agency costs, and therefore, bondholders act on various restrictions and covenants, which will diminish firm value;

III) investments of the same risk class that the firm is in

Choose the most correct answer related to When shareholders pursue strategies such as taking excessive risks or paying excessive dividends, these will result in.

Select one:

a. I only

b. II only

c. III only

d. I and III only

e. None of these above