Acf Question and answers rated A+ 2023/2024

Acf Question and answers rated A+ 2023/2024 Agency Benefits of Debt - correct answer -ownership concentration -reduce wasteful investment -commitment to vigor Managerial Entrenchment - correct answer Manager faces little threat of being fired and replced. Entrenchment may allow managers to run the firm in their own best interests, not in best interest of shareholders Concentration of Ownership - correct answer -Debt financing allows the original owners of the firm to maintain their equity stake. -As major shareholders, they have strong interest in doing what is best for firm. -with debt financing, owners reap more marginal value -using leverage can benefit the firm by preserving ownership concentration and avoiding agency costs -more skin in the