What is the agency problem as it relates to the corporate form?

		Conflict of interest that arises between the shareholders and managers of a corporation
		The dilution of shareholder ownership following a private placement
		Higher brokerage costs associated with buying and selling company shares
		The ability of a company to suspend a dividend reinvestment scheme

Which of the following statements about Financial Risk is incorrect?

		The higher the debt-to-equity ratio, the higher the degree of financial risk
		Interest payments on debt must be paid when they fall due
		When a business fails, equity holders rank ahead of debt providers due to their higher financial risk
		The higher the proportion of debt the higher the potential return on shareholders funds

An already listed company sold large parcels of new shares directly to institutional investors, this is called:

		A pro-rata rights issue
		Underwriting
		Securitisation
		A placement