1. A common problem for closely held corporations is:
A) the lack of access to substantial amounts of capital
B) the seperation of ownership and managment
C) an abundance of agency problems
D) the restriction that sharholders receive only one vote each
2. The cost of capital:
A) is the expected rate of return on a capital investment.
B) is the interest rate that the firm pays on a loan from a bank or insurance company.
C) for risky investments is normally higher than the firm's borrowing rate.
D) is an opportunity cost determined by the risk-free rate of return.