Why do managers tend to retain free cash flow?
A) Managers are in the best position to decide the best use of those funds.
B) These funds are needed for undertaking profitable projects and the issue costs are less than new issues of stocks or bonds.
C) Managers may not be acting in the shareholders best interest,and for a variety of reasons,want to use the free cash flow.
D) none of the options
Correct Answer:
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