While debt can reduce agency costs between shareholders and management: a. excessive debt may also induce the risk-averse managers to engage in extra risky investment projects, causing an underinvestment problem.
b. with debt financing, companies cannot misuse debt to finance corporate empire building.
c. none of the options
d. excessive debt may also induce the risk-averse managers to forgo profitable but risky investment projects, causing an underinvestment problem.
e. Additionally, with debt financing, companies can misuse debt to finance corporate empire building.

The simple interest in a loan of $200 at 10 percent interest per year is

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Which is cheaper: eating out or dining in? the mean cost of a flank steak, broccoli, and rice bought at the grocery store is $13.04 (money.msn website, november 7, 2012). a sample of 100 neighborhood restaurants showed a mean price of $12.75 and a standard deviation of $2 for a comparable restaurant meal. a. develop appropriate hypotheses for a test to determine whether the sample data support the conclusion that the mean cost of a restaurant meal is less than fixing a comparable meal at home. b. using the sample from the 100 restaurants, what is the p-value? c. at a = .05, what is your conclusion? d. repeat the preceding hypothesis test using the critical value approach