Which one of the following is an agency cost?
a. accepting an investment opportunity that will add value to the firm
b. increasing the quarterly dividend
c. investing in a new project that creates firm value
e. hiring outside accountants to audit the company's financial statements
e. closing a division of the firm that is operating at a loss
Answer: E
If the answers is incorrect or not given, you can answer the above question in the comment box. If the answers is incorrect or not given, you can answer the above question in the comment box.