[Verse 1] Three players at the table, each with different dreams Shareholders want profits flowing like mountain streams Managers love perks and empire-building schemes While creditors just pray their money's safe it seems When interests diverge, the friction starts to show Agency costs pile up, making value go [Chorus] Agency costs bite when goals don't align Shareholders, managers, creditors in line Monitoring, bonding, residual loss combined A-G-E-N-C-Y spells the grind Capital structure pays the price When trust gets rolled like loaded dice [Verse 2] Managers might splurge on jets and marble floors Or chase risky ventures behind boardroom doors Shareholders watch helplessly as value pours Into wasteful projects that nobody adores Monitoring costs money, bonding's not free Residual losses drag down company spree [Chorus] Agency costs bite when goals don't align Shareholders, managers, creditors in line Monitoring, bonding, residual loss combined A-G-E-N-C-Y spells the grind Capital structure pays the price When trust gets rolled like loaded dice [Bridge] Debt can discipline wild management ways Leverage forces focus on cash-flowing days But too much borrowing makes creditors fray Bankruptcy costs loom when bills can't pay Optimal mix balances every threat Agency costs versus financial sweat [Verse 3] Asset substitution tricks the lending crowd Risk-shifting games played sneaky and loud Underinvestment leaves good projects plowed Under mountains of debt that scream too proud Each conflict creates another hidden fee Dragging down the firm's efficiency [Chorus] Agency costs bite when goals don't align Shareholders, managers, creditors in line Monitoring, bonding, residual loss combined A-G-E-N-C-Y spells the grind Capital structure pays the price When trust gets rolled like loaded dice [Outro] Balance the tensions, minimize the pain Optimal structure keeps all parties sane Agency costs managed, value flows again
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