Which of the following actions would be likely to encourage a firm's managers to make decisions that are in the best interest of shareholders? The shareholders give the firm's managers at the annual meetings greater freedom to take whatever actions they decide to take. The state legislature passes a law that makes it more difficult to successfully complete a hostile takeover. The percentage of fixed executive compensation in the form of cash is increased. The number of institutional investors (large shareholders) who can afford to monitor the firm's managers, rises substantially. None of the answers is correct