Question $3$

Which of the following actions would be most likely to reduce potential conflicts between stectheiders and bondheidersi?

Including restrictive covenants in the company's bond indenture $($which is the centract between the company and its bondholders$).$

Compensating managers with more stock options and less cash income.

The passage of laws that make it harder for hostile takeovers to succeed.

A government regulation that banned the use of convertible bonds.

The firm begins to use only long$-$term debt, e$.$g$.,$ debt that matures in $30$ years or more, rather than debt that matures in less than one year.