1. Give a definition and an example of an agency cost. List and disscurss at least three ways that can help convince managers to work in the best interest of the stockholders? Assume there are no golden parachutes.
2. Your are considering the purchase of a bond with a face value of $2500 due in 20 years that pays 5% interest. If your MARR is 7% what would you be willing to pay for it?