In some instances, accounting principles require a departure from valuing inventories at cost alone. determine the proper unit inventory price in the following cases, under the lower-of-cost-or-market rule. (round answers to 2 decimal places, e. g. 52.75.)
cases 1 2 3 4 5
cost $15.90 $16.10 $15.90 $15.90 $15.90
net realizable value 14.50 19.20 15.20 10.40 16.40
net realizable value less normal profit 12.80 17.60 13.75 8.80 14.80
market (replacement cost) 14.80 17.20 12.80 9.70 16.80

Which of the following actions would be most likely to reduce potential conflicts of interest between stockholders and managers? a. change the corporation's formal documents to make it easier for outside investors to acquire a controlling interest in the firm through a hostile takeover. b. eliminate a requirement that members of the board of directors must hold a high percentage of their personal wealth in the firm's stock. c. for a firm that compensates managers with stock options, reduce the time before options are vested, i. e., the time before options can be exercised and the shares that are received can be sold. d. pay managers large cash salaries and give them no stock options. e. beef up the restrictive covenants in the firm's debt agreements.