Takeovers are most likely to be attempted if the target firm's stock price is above its intrinsic value The efficiency of the U.S. economy would probably be increased if takeovers were absolutely forbidden. Well-designed bond covenants are useful for reducing potential conflicts between stockholders and managers. Stockholders in general would be better off if managers never disclosed favorable events and therefore caused the price of the firm's stock to sell at a price below its value. A firm's new president wants to strengthen the company's financial position. Which of the following actions would make it financially stronger? Increase inventories while holding sales constant. Increase accounts receivable while holding sales constant. Increase accounts payable while holding sales constant. Increase notes payable while holding sales constant. Increase EBIT while holding sales and assets constant