1. Type II agency cost of equity refers to the conflicts between CEO and controlling shareholders.

A question requiring a 'True/False' answer.(Required)

TrueFalse

2. The pyramid structure is a discrepancy between cash flow rights and control rights.

A question requiring a 'True/False' answer.(Required)

TrueFalse

3.Dual class stocks are usually issued to maintain control rights of the founder.

A question requiring a 'True/False' answer.(Required)

TrueFalse

4. Tunneling is an illegal business practice in which a majority shareholder directs company assets or future business to themselves for personal gain

A question requiring a 'True/False' answer.(Required)

TrueFalse

5. Agency cost of debt refers to the conflict between shareholders and creditors.

A question requiring a 'True/False' answer.(Required)

TrueFalse

6. Typical cases of agency cost of debts are

A multiple-choice question with several possible answers.(Required)

1. Overinvestment
2. Corporate jets
3. Risk substitutions
4. Underinvestment

7. Debt covenants are restrictions that lenders put on lending agreements to limit the actions of the borrower.

A question requiring a 'True/False' answer.(Required)

TrueFalse

8. Positive covenants include

A multiple-choice question with several possible answers.(Required)

1. Can not borrow more debt
2. Can not pay cash dividends before debt repayment
3. Provide yearly audited financial statements
4. Achieve a certain threshold in certain financial ratios

9. Firm A hold 55% of Firm C.

Firm B hold 45% of Firm C.

Firm C hold 60% of Firm F

Firm D hold 40% of Firm F.

Firm A ' cash flow right on firm F is %.

Firm A ' control right on firm F is %.

Notes: You don't need to put % in above blanks. If the answer is 50%, please put 50.