Question 15 2 pts Which one of the following is most apt to align management's priorities with shareholders' interests? Allowing employees to retire early with full retirement benefits Increasing employee retirement benefits Allowing a manager to decorate his or her own office once he or she has been in that office for a period of three years or more Compensating managers with shares of stock that must be held for three years before the shares can be sold Increasing the number of paid holidays that long-term employees are entitled to receive Question 16 2 pts Phillips Equipment has 80,000 bonds outstanding that are selling at par (51000). Bonds with similar characteristics are yielding 7.5 percent. The company also has 750,000 shares of 7 percent dividend preferred stock and 2.5 million shares of common stock outstanding. The preferred stock sells for $65 a share (with the par value being $100). The common stock has a beta of 1.34 and sells for $42 a share. The U.S. Treasury bill is yielding 2.8 percent and the return on the market is 11.2 percent. The corporate tax rate is 38 percent. What is the firm's weighted average cost of capital? 10.15 percent 11.30 percent 11.56 percent 11.18 percent 10.64 percent Question 17 2 pts The balance sheet of Binger, Inc. has the following balances as shown in table below; What is the amount of the change in net working capital? Beginning Balance Cash Ending Balance $16,800 $21,400 Accounts Receivable 47,400 52.300 83,800 77.400 211,600 203.800 Inventory Net Fixed Assets Accounts Payable Long-term Debt 54,900 56,900 170,000 185.000 -58,100 $8,000 $8.100 -$7,400 $7.700