Define agency costs and why it is important they are kept, Financial Management

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Define agency costs and why it is important they are kept

1. Define agency costs, and why it is important they are kept in check?

2. What are some considerations for companies in choosing which marketable securities to invest idle cash balances?

3. How does collateral affect the interest rate on a bond? How does subordination affect the interest rate on a bond too? What else might affect the interest rate on a bond?

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Financial Management: Define agency costs and why it is important they are kept

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Financial Management: Define agency costs and why it is important they are kept

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