Which one of the following statements is TRUE?

a. An example of an agency cost is when an attorney hires an expert witness for a trial.

b. An example of asset switching is when a company borrows for a new manufacturing facility but then uses it to repurchase its own stock.

c. Creditors have a claim on a firm's earning stream through the dividend payments they receive.

d. The commission required by the Federal Housing Agency for a small business loan is an example of an agency cost.

e. An example of an agency cost is the salary of the agent hired to work for the principal.