Agency Costs and Increased Debt Levels in Capital Structure Decisions

ABC Corporation, a publicly traded firm, is considering shifting its capital structure by increasing its debt levels significantly. The management believes that this move will enhance return on equity (ROE) and create value for shareholders. However, a few board members are concerned about the potential for agency costs that may arise from taking on more debt. Agency costs occur when the interests of the management differ from those of the shareholders.

In this context, which of the following outcomes most likely illustrates an agency cost resulting from the proposed increase in debt?