Which of the following actions would be most likely to reduce potential conflicts of interest between stockholders and managers? a. Eliminate a requirement that members of the board of directors must hold a high percentage of their personal wealth in the firm's stock b. Pay managers large cash salaries and give them no stock options. c. Beef up the restrictive covenants in the firm's debt agreements. d. Change the dyperation's formal documents to make it easier for outside investors to acquire a controlling interest in the firm through a hostile takeover Oe. For a firm that compensates managers with stock options, reduce the time before options are vested, .e, the time before options can be exercised and the shares that are received can be sold Which of the following actions would be likely to encourage a firm's managers to make decisions that are in the best interests of shareholders? a. The state legislature passes a law that makes it more difficult to successfully complete a hostile takeover. O b. The firm's founder, who is also president and chairman of the board, sells 90% of her shares. c. The percentage of executive compensation that comes in the form of cash is increased and the percentage coming from long-term stock options is reduced O d. The percentage of the firm's stock that is held by institutional investors such as mutual funds, pension funds, and hedge funds rather than by small individual investors rises from 10% to 80%, e. The firm's board of directors gives the firm's managers greater freedom to take whatever actions they think best without obtaining board approval