publicly traded firm, and compensation is most likely to in a) A fised salary to contacts are designed to reduce likely to induce to manager behove in the best w b) A bonus tied to a company's c) A bonus tied to a company's t s d) A stock option grant e) Restricted stock in the company restrictions are on trading) 1) A bonus tied to a company's bond rating 13) One of the arguments made for stronger corporate governance is that managed companies. Which of the following links between corporate governance will management quality do you think is closest to the truth? a) Firms with better corporate governance are better managed han firms with weak coperte governance b) Firms with better corporate governance are worse managed than firms with a corporate governance c) Firms with better corporate governance are more likely to change managers when they are badly managed d) Firms with better corporate governance are less likely to change managers when they are badly managed e) There is no relationship between corporate governance and how a firm is managed 14) Most decisions made by corporations create costs to society. Which of the following is the most efficient way to reduce these social costs? (Efficiency implies that the costs created for the non- guilty are minimized.) a) Make managers take ethics classes b) Make it illegal to create social costs c) Convince customers to stop buying the firm's products and investors to sell it's stock d) Sue companies that create costs for society 15) In estimating the cost of debt, we argued that this cost is a combination of a risk-free rate and a risk premium. The risk premium for the cost of debt depends upon: a) the beta for the firm's bonds. b) the beta for the firm's stock. c) the risk premium for the market portfolio of stocks and bonds. d) the credit rating and default risk of the firm. publicly traded firm, and compensation is most likely to in a) A fised salary to contacts are designed to reduce likely to induce to manager behove in the best w b) A bonus tied to a company's c) A bonus tied to a company's t s d) A stock option grant e) Restricted stock in the company restrictions are on trading) 1) A bonus tied to a company's bond rating 13) One of the arguments made for stronger corporate governance is that managed companies. Which of the following links between corporate governance will management quality do you think is closest to the truth? a) Firms with better corporate governance are better managed han firms with weak coperte governance b) Firms with better corporate governance are worse managed than firms with a corporate governance c) Firms with better corporate governance are more likely to change managers when they are badly managed d) Firms with better corporate governance are less likely to change managers when they are badly managed e) There is no relationship between corporate governance and how a firm is managed 14) Most decisions made by corporations create costs to society. Which of the following is the most efficient way to reduce these social costs? (Efficiency implies that the costs created for the non- guilty are minimized.) a) Make managers take ethics classes b) Make it illegal to create social costs c) Convince customers to stop buying the firm's products and investors to sell it's stock d) Sue companies that create costs for society 15) In estimating the cost of debt, we argued that this cost is a combination of a risk-free rate and a risk premium. The risk premium for the cost of debt depends upon: a) the beta for the firm's bonds. b) the beta for the firm's stock. c) the risk premium for the market portfolio of stocks and bonds. d) the credit rating and default risk of the firm