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QUESTION 11 Which of the following is/are correct regarding agency costs? Not yet answered Marked out of 1.00 p Flag question 1. Indirect costs occur
QUESTION 11 Which of the following is/are correct regarding agency costs? Not yet answered Marked out of 1.00 p Flag question 1. Indirect costs occur when managers, acting to minimize the risk of the firm, forego investments shareholders would prefer they take. II. Direct costs occur when shareholders must incur costs to monitor the manager's actions. III. Direct costs occur when managers buy assets considered necessary by the firm's owners Select one O a. I. 11, and 111 Ob ll only O c II and III only Od l only eland Il only Previous pago Next page Which of the following statements is true? QUESTIONS Not yet answered Marked out of 1.00 Select one: P Flag question O a. Future values decrease with increases in interest rates. O b. else the same, the longer the term of a loan the lower will be the total interest you pay on it. O c Compounding essentially means earning interest on interest. O d. Present values and discount rates move in the same direction with one another O e. On loans with monthly compounding, the APR will exceed the EAR Previous page Next page
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