Suppose that the board of directors pays the ceo a bonus in, Financial Management

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Suppose that the board of directors pays the ceo a bonus in

Suppose that the Board of Directors pays the CEO a bonus in any year that the share price goes up compared to the previous year, but no bonus if the share price either falls or stays the same. What would this particular type of compensation scheme be designed to control?

Market values

Debt levels

Business risk

Agency costs

Limited liability

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