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.

For fundamental-type variables, list-initialization syntax prevents narrowing conversions that could result in data loss. for fundamental-type variables, list-initialization syntax allows narrowing conversions that could result in data loss.

An investment counselor calls with a hot stock tip. he believes that if the economy remains strong, the investment will result in a profit of $40 comma 00040,000. if the economy grows at a moderate pace, the investment will result in a profit of $10 comma 00010,000. however, if the economy goes into recession, the investment will result in a loss of $40 comma 00040,000. you contact an economist who believes there is a 2020% probability the economy will remain strong, a 7070% probability the economy will grow at a moderate pace, and a 1010% probability the economy will slip into recession. what is the expected profit from this investment?

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