Which one of the following situations is most likely to create an agency conflict?

a.

Hiring an independent consultant to study the operating efficiency of the firm

b.

Giving all employees a bonus if a certain level of efficiency is maintained

c.

Compensating a manager based on his or her divisions net income

d.

Rejecting a profitable project to protect an employees job

question 2

The dividend yield is defined as:

a.

the current semiannual cash dividend divided by the current market price per share.

b.

next year's expected cash dividend divided by the current book value per share.

c.

next year's expected cash dividend divided by the current market price per share.

d.

the current annual cash dividend divided by the current book value per share.