Rowdy's Restaurants cash flow ($ in millions)
Cash received from:
Customers $ 3,600
Interest on investments 320
Sale of land 220
Sale of Rowdy's capital stock 840
Issuance of debt securities 3,200

Cash paid for:
Interest on debt $ 420
Income tax 200
Debt principal reduction 2,700
Purchase of equipment 6,400
Purchase of inventory 2,200
Dividends on capital stock 560
Operating expenses 740

Rowdy's would report net cash inflows (outflows) from operating activities in the amount of:
A. $220 million.

B. $(2,980) million.

C. $(6,180) million.

D. $(6,400) million.

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.