6. Employee stock ownership plans (ESOPs) Indicate whether each of the following statements related to employee stock ownership plans (ESOPs) increases or decreases value for outside stockholders: Value for Outside Stockholders ESOP statements In theory, employees who have equity in a firm will be motivated to work harder and smarter The creation of an ESOP is a form of additional compensation to employees. (Assume that the firm would have to provide this additional compensation in a different way if it did nat create an ESOP.) Creating an ESOP can be a powerful tool in warding off takeovers. Niagular Corp. recently created an ESOP. The company issued 200,00D new shares of stock at $50per share, whichit sold to the ESOP. The ESOP borrowed $10 million to purchase the newly issued shares from the company. The inancial institution was willing to lend the money to the ESOP, because Niagular Corp. signed a guarantee for the loan. The firm used the money from the ESop to repurchase its shares on the open market at $50per share. which of the following statements describes the net effect of these transactions on Niagular Corp.'s balance sheet? O The firm's total shareholders' equity will increase by $10 million. O The firm's total liabilities will increase by $10 million. O The amount of the firm's total liabilities and total shareholders'equity will remain the same