Which of the following statements about managers' compensation is true? a. High salaries motivate managers to increase stockholders' wealth. b. Awarding managers stock options on a monthly basis instead of yearly keeps stock prices high. c. Basing managers' compensation on intrinsic value, not market price, will lead to constant increases in stock price. d. Yearly changes in compensation policies keep managers alert to differences in stock prices. e. Rewarding managers for stock performance over the long run gives them an incentive to keep the stock price high over time.

Which of the following statements about managers' compensation is true? a. High salaries motivate managers to increase stockholders' wealth. b. Awarding managers stock options on a monthly basis instead of yearly keeps stock prices high. c. Basing managers' compensation on intrinsic value, not market price, will lead to constant increases in stock price. d. Yearly changes in compensation policies keep managers alert to differences in stock prices. e. Rewarding managers for stock performance over the long run gives them an incentive to keep the stock price high over time.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter15: Dividend Policy

Section: Chapter Questions

Problem 10QTD

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