What is the key issue for lenders in relation to the agency problem?
A) Is the dividend payment being used as a signal intended to increase share prices?
B) Are excessively low dividends being used to keep money out of the reach of lenders?
C) Is the dividend payment being used as a signal intended to decrease share prices?
D) Are excessively high dividends being used to keep money out of the reach of lenders?
Correct Answer:
Verified
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