Which of the following is the impact of agency cost?Oa It increases the wealth of the shareholders of the company.Ob. It increases the operating expenses of the company.Octincreases the profit of the company.O d. It increases the wealth of the managers of the company.

Agency costs are internal costs incurred due to the competing interests of Shareholder i.e the…

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Which of the following is the impact of agency cost?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter1: The Role And Objective Of Financial Management

Section: Chapter Questions

Problem 8QTD

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Question

Which of the following is the impact of agency cost?
Oa It increases the wealth of the shareholders of the company.
Ob. It increases the operating expenses of the company.
Octincreases the profit of the company.
O d. It increases the wealth of the managers of the company.

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