If a company wanted to ensure that its managers’ interests are aligned with the company’s shareholders, which of the following capital structures should it use?
If a company wanted to ensure that its managers’ interests are
aligned with the company’s shareholders, which of the following capital structures should it use?
A. A debt-heavy capital structure.
B. The company’s capital structure has no effect on a manager’s interests.
C. An equity-heavy capital structure.
D. A balanced capital structure
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