Which one of the following actions by a financial manager is most apt to create an agency problem?
Refusing to borrow money when doing so will create losses for the firm
Refusing to lower selling prices if doing so will reduce the net profits
Agreeing to pay bonuses based on the market value of the company's stock rather than on its level of sales
Refusing to expand the company if doing so will lower the value of the equity
Increasing current profits when doing so lowers the value of the company's equity
