Which of the following statements is true?
A) The existence of bondholder control rights can ultimately result in an increase in the value of the firm's equity.
B) Although there is a conflict of interest between creditors and stockholders, stockholders, in general, tend to agree on what is in their collective best interest.
C) Conflicts of interest exist between the management of a firm and its investors, but the investors'--both debtholders and stockholders--interests tend to be almost perfectly
Aligned.
D) None of the above is a true statement.
Correct Answer:
Verified
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