Agency Cost Assignment | Homework For You

QUESTION 12

  1. Which one of the following statements is TRUE?
    a. An agency cost is the wage required to pay someone who is hired to perform a service.
    b. An agency cost is the reduction in firm value due to agency conflicts.
    c. The commission required by the Federal Housing Agency for a small business loan is an example of an agency cost.
    d. An example of an agency cost is when an attorney hires an expert witness for a trial.
    e. An example of an agency cost is when the board of directors pays a dividend to shareholders. Get Finance homework help today

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