Banking regulators have a powerful weapon to encourage compliance with minimum capital guidelines as they can compel a noncomplying bank to do any or all of the following except: Multiple Choice require the bank to increase the number of outside directors on its board. require the bank to submit a plan describing how and when its capital will be increased O subject the bank to more frequent examinations by the regulator. deny a request to merge, open new branches, or expand services. Managers cater to Wall Street (i.e., try to meet earnings benchmarks) for which of the following reasons? Multiple Choice To build credibility with the capital market. O To maintain or increase the firm's stock price. To build the external reputation of management. All of these are reasons managers cite for meeting earnings benchmarks. Which of the following does not represent the impact of changes in EPS on the stock price? Multiple Choice O Small differences in reported EPS to expected EPS will not affect the stock price. Penny differences in EPS matter a lot to investors. Management makes accounting choices to get to an EPS number rather than EPS being a random result around analyst's expectations. It is better to be $.01 over EPS target than at or $.01 below the target