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

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

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

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