Managers Should Consider ________ for External Financing When Agency Costs

question 85

Multiple Choice

Managers should consider ________ for external financing when agency costs are significant.

• A)long-term debt
• B)retained earnings
• C)internal equity
• D)short-term debt
• E)preferred stock

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Definitions:

Filtrate

The fluid that has passed through a filter, removing certain particles and solutes, commonly used in the context of biological processes like kidney filtration.

Reabsorption

The process by which substances are taken back into the bloodstream from the filtrate produced by the kidneys or other filtering mechanisms.

Podocytes

Specialized cells in the kidney that wrap around capillaries of the glomerulus, playing a key role in the filtration of blood to form urine.

Ascending Limb

Part of the loop of Henle in the nephron of the kidney, which helps concentrate urine by allowing the reabsorption of water and salts.