financial management overview3

financial management overview3 - i . Which of the following...

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i . Which of the following actions are likely to reduce agency conflicts between stockholders and managers? a. Paying managers a large fixed salary. b. Increasing the threat of corporate takeover. c. Placing restrictive covenants in debt agreements. d. All of the statements above are correct. e. Statements b and c are correct. Agency Answer: d Diff: E ii . Which of the following actions are likely to reduce the agency problem between stockholders and managers? a. Congress passes a law that severely restricts hostile takeovers. b. A manager receives a lower salary but receives additional shares of the company’s stock. c. The board of directors has become more vigilant in its oversight of the company’s management. d. Statements b and c are correct. e. All of the statements above are correct. Managerial incentivesAnswer: e Diff: E iii . Which of the following mechanisms is used to motivate managers to act in the interest of shareholders? a. Bond covenants.
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financial management overview3 - i . Which of the following...

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