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4. Corporate governance The management of Green Caterpillar Garden Supplies inc. controls 58% of the company's stock. The firm did not meet any of its

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4. Corporate governance The management of Green Caterpillar Garden Supplies inc. controls 58% of the company's stock. The firm did not meet any of its quarterly sales projections for the last year. Some of the firm's institutional investors are worried that the firm's poor performance is partly because management has not been focused on maximizing shareholder wealth. Which of the following measures would the institutional investors most likely want to see Implemented? They would want to make sure the company has a restricted voting rights provision. They would want the company to ban targeted share repurchases. They would want to make sure the company's charter contains a shareholder rights provision. It is reasonable to assume that a firm's management is going to be ultimately motivated to act in their own best interest. It can be a serious problem for shareholders if management's self-interests do not align with shareholders' self-interests. Select the statement that best describes the board of directors' actions in the following scenarios Red Oyster Seafood Company currently has $1.1 billion in cash on its balance sheet. The CFO thinks the firm will need $600 million in cash to finance operations for the next year. The CFO has recommended that the firm keep the excess cash in a marketable securities portfolio to allow for unexpected costs. However, the board of directors has decided that the firm will pay this money out to the shareholders in the form of a cash dividend. The board's decision will give management the incentive to make decisions that are not in the shareholders best interest The board's decision is extremely risky and not very practical The board's decision will help in management's interests with the shareholders interests

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