Pay g Payroll service (PPS) recently declared bankruptcy. The price of PPS's stock has dropped from S10 per share one year ago si today. You can imaaine that are not happy that the value of their stock has dropped so At the g, same time the financial sition the finm they did violated any laws or was their salaries and perquisites substantially Nothing as an unethical act. We would most likely describe this situation b an accounting glitch. laws. increased c. an appropriate use of the tax compensation should always be d appropriate action, because executive substantially each year. executives were trying to maximize the e. because it is obvious that the them to do. value of the firm, which is what the shareholders want 6. Which of the following mechanisms would be most likely to help motivate managers to act in the best interests of shareholders? give them more stock options. a Pay managers less cash and takeover ofaction. and b. Take actions that reduce the possibility of a hostile freedom from stock options e. Elect a board of directors that allows managers greater comes d. Decrease the proportion of executive compensation that increase the proportion that is paid as cash e, None of the above. S800 in ten (5) 7. All else equal, if you to receive a certain amount in the future. say. such the present value that future will be highest if the interest earned on of amount investments is b, monthly c, d, amount today if you need e, daily have invest sum At appro imately what six would you interest is compounded ount to provided to answer the question. is 24% information d. Not enough e, None of