A negative effect of the increase in debt in the capital structure to control the agency problem can be: Select one: a.

[answerhappygod]

A negative effect of the increase in debt in the capital
structure to control the agency problem can be:
Select one:
a.
the excessive payment of corporate taxes due to the high interest
on the debt.
b.
the excessive investment of managers in projects even with a low
NPV.
c.
resulting in very high risk aversion in management, leading to
little or almost no investment in capital projects, even with
positive NPVs. This would cause stagnation or little growth of the
firm.
d.
a wrong signal that the firm is spreading the firm's risk among
more shareholders.