No.PZ2021051502000010
来源:
In the past, Company Vega follow pecking order theory to determine the appropriate method of raising capital. Because the first preference is made complete use of as a source of capital, Vega announced that it will issue debt and use the proceeds to repurchase shares to achieve the optimal capital structure.
No.PZ202105150200001002
来源:
Would the net agency costs of equity change if the Vega’s announcement come true?
您的回答C, 正确答案是: C
A
No
B
yes, net agency costs of equity will increase
C
yes, net agency costs of equity will decrease
解析
Correct Answer: C
Agency theory predicts that a reduction in net agency costs of equity results from an increase in the use of debt versus equity. The more financially leveraged a company is, the less freedom managers have to either take on more debt or unwisely spend cash.
考点：Corporate Issuers - Capital Structure - Costs Affect Capital Structure
