Uniqueness of assets creates agency costs for shareholders

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Reference no: EM131511077

Cite and describe two ways that the uniqueness of assets creates agency costs for shareholders.

Multiple choices are:

employees can demand a risk premium (higher compensation) for their effort to develop specialized talent that is not valuable to other employers

lenders can demand a risk premium (higher interest rate) for loaning against a unique asset (collateral)

new shareholders can demand a risk premium (higher required rate of return) for investing in a firm that uses unique assets

customers can demand a risk premium (lower price) for buying a product from a firm that uses unique assets

A and B

A and C

A and D

B and C

B and D

C and D

all but A

all but B

all but C

all but D

all are true

Reference no: EM131511077

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