Increase/ decrease for the first 3.

Plz answer all my questions.

5. Employee stock ownership plans (ESOPs) Aa Aa Indicabe whether each of the following statements related to employee stock ownership plans (ESOPs) increases or decreases value for outside stockholders: ESOP Statements In theory, employees who have equity in a firm will be motivated to work harder and smarter The creation of an ESOP is a form of additional compensation to employees. Assume that the firm would have to provide this additional compensation in a different way if it did nat create an ESOP.) Creating an ESOP can be a powerful tool in warding off takeovers. Value for Outside Stockholders Decreases Increases Chilly Moose Fruit Producer recently created an ESOP. The company issued 200,0DD new shares of stock at$50 per share, which it sold to the ESOP. The ESOP borrowed $10 million to purchase the newly issued shares from the company. The financial institution was willing to lend the money to the ESOP, because Chilly Moose Fruit Producer signed a guarantee for the loan. The firm used the money from the ESOP to repurchase its shares on the open market at $50 per share. How will Chilly Moose Fruit Producers guarantee of the $10 million loan be refected on the company's balance sheet? O The company will increase its cash balance by $10 million. O The company's guarantee of the loan is considered an off-balance sheetliability of $10 million. O The company will increase its total liabilities by $10 million. 5. Employee stock ownership plans (ESOPs) Aa Aa Indicabe whether each of the following statements related to employee stock ownership plans (ESOPs) increases or decreases value for outside stockholders: ESOP Statements In theory, employees who have equity in a firm will be motivated to work harder and smarter The creation of an ESOP is a form of additional compensation to employees. Assume that the firm would have to provide this additional compensation in a different way if it did nat create an ESOP.) Creating an ESOP can be a powerful tool in warding off takeovers. Value for Outside Stockholders Decreases Increases Chilly Moose Fruit Producer recently created an ESOP. The company issued 200,0DD new shares of stock at$50 per share, which it sold to the ESOP. The ESOP borrowed $10 million to purchase the newly issued shares from the company. The financial institution was willing to lend the money to the ESOP, because Chilly Moose Fruit Producer signed a guarantee for the loan. The firm used the money from the ESOP to repurchase its shares on the open market at $50 per share. How will Chilly Moose Fruit Producers guarantee of the $10 million loan be refected on the company's balance sheet? O The company will increase its cash balance by $10 million. O The company's guarantee of the loan is considered an off-balance sheetliability of $10 million. O The company will increase its total liabilities by $10 million