Which of the following situations would most likely encourage a firm's managers to make decisions that are in the best interests
of stockholders? A. 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.
B. The state legislature passes a law that makes it more difficult to successfully complete a hostile takeover.
C. The firm's founder, who is also the president and chairperson of the board, sells 85% of her shares.
D. The firm's board of directors gives the firm's managers greater freedom to take whatever actions they think best without obtaining board approval.
E he 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%.
It is from my experience since if it is from his experience then the author could tell us something like it is a beautiful place or it is very warm. based on these statements it is opinions since he doesn't have a fact do back it up. his experience tells us what he thought so it is his opinion
This nominal group technique is a type of brain storming where structured meetings are being held among the members, where they will try to take out the solutions to the problems identified by them, and thus facilitating decision making. The meetings are structured here because the goal is to make sure the meetings are not dominated by few individuals and the silent members also share their thoughts and ideas with the rest of the group.
Year Cash Flow Cumulative Cash flow Discounted Cash Flow(8.9%) 0 $5,095,000 $5,095,000 $453,455 1 $1,500,000 $3,595.000 $3,141,5452 $3,000,000 $ 595,000 $141,5453 $4,500,000 ($3,905,000) $3,4515454 $6,500,000ABC Hospital will get ROI in 3 years, this option I would recommend to the CEO.