Which of the following is a type of direct agency cost? Multiple Choice The cost...
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Accounting
Which of the following is a type of direct agency cost? Multiple Choice The cost of an audit of the firm's financial statements. Salaries paid to the firm's managers. The costs of financing the firm. The costs of buying insurance on the firm's assets. The loss of potential profit because a manager made a decision in his own best interest instead of that of the company. Which of the following is NOT true about bonds? Multiple Choice Interest payments are at least partially tax deductible to the issuing corporation. Bondholders are ahead of stockholders in terms of claims on the company's assets should the firm go into bankruptcy. Bondholders have a vote in electing Directors to the Board. Bondholders are entitled to receive the face (par) value of the bond if they hold it on the maturity date. Owning a bond does not give the holder an ownership stake in the company
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