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Imagine that you are the chairman of the board of a large corporation. Which of the following mechanisms do you think the board should choose to adopt to motivate top-level managers to act in the best interests of shareholders?a.Eliminate a requirement that members of the board of directors have a substantial investment in the firm's stock.b.Decrease the use of restrictive covenants in bond agreements.c.Take actions that reduce the possibility of a hostile takeover.d.Elect a board of directors that allows managers greater freedom of action.e.Increase the proportion of executive compensation that comes from stock options and reduce the proportion that is paid as cash salaries.
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