Wawa food markets is a convenience store chain located primarily in the northeast. the company sells gas, candy bars, drinks, and other grocery-related items. st. jude medical incorporated sells medical devices related to cardiovascular needs. suppose a local wawa food market and st. jude sales office report the following amounts in the same year (company names are disguised):

Which of the following statements is correct? stockholders should generally be happier than bondholders to have managers invest in risky projects with high potential returns as opposed to safe projects with lower expected returns. potential conflicts between stockholders and bondholders are increased if a firm's bonds are convertible into its common stock. takeovers are most likely to be attempted if the target firm’s stock price is above its intrinsic value. one advantage of operating a business as a corporation is that stockholders can deduct their pro rata share of the taxes the firm pays, thereby eliminating the double taxation investors would face in a partnership.