This preview shows page 1. Sign up to view the full content.
Unformatted text preview: agent problem. Because debt contracts are not subject to this particular principal agent problem, one way to mitigate this problem is to use debt contacts rather than equity contracts. CHAPTER 9 2. Multiple-Choice Problems 1-A; 2-C; 3-A; 4-C; 5-A; 6-B; 7-C 1...
View Full Document
This note was uploaded on 07/17/2008 for the course ECON 520 taught by Professor Ogaki during the Spring '07 term at Ohio State.
- Spring '07