Which of the following statements is CORRECT?

		-One of the ways in which firms can mitigate or reduce potential conflicts between bondholders and stockholders is by increasing the amount of debt in the firm's capital structure.
		-The threat of takeover generally increases potential conflicts between stockholders and managers.
		-Managerial compensation plans cannot be used to reduce potential conflicts between stockholders and managers.
		-The threat of takeovers tends to reduce potential conflicts between stockholders and managers.
		-The creation of the Securities and Exchange Commission (SEC) has eliminated conflicts between managers and stockholders.