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Question of the Week: Level 2 - Corporate Finance
According to Jensen’s free cash flow hypothesis, a company’s shareholders could decrease agency costs by demanding that management pay out all free cash flow as dividends. Such a solution would most likely appear in which type of company?
Question of the Week: Level 2 - Corporate Finance 9 votes
A. Large-cap value stock.
B. Large-cap growth stock.
C. Small-cap growth stock.