1-Which of the following does not assist in ensuring managers act in the best interest of owners?

Select one:

a. A compensation package for managers that is all cash with no ties to performance.

b. A compensation package for managers that ties their salary to the firm's share price.

c. There is a high degree of likelihood the firm will become a takeover candidate if the firm performs poorly.

d. The threat that if the firm does poorly, shareholders will use a proxy fight to replace the existing management.

e. Managers are promoted only if the firm prospers.

2-

If a firm uses part of the cash it received from payment of an account receivable to buy inventory and leaves the rest in its bank account, its current ratio will remain unchanged.

Select one:

a. True

b. False

3-

Calculate total asset value given the following information: ROA = 5%; Total equity = $600,000 and ROE = 8%.

Select one:

a. $1,200,000

b. $1,100,000

c. $1,400,000

d. $1,300,000

e. $960,000

4-

All else equal, a firm that utilizes assets inefficiently will have a higher sustainable growth rate than a firm that does not.

Select one:

a. True

b. False

-Please just answer if you are 100% sure about your answer.