Abilene western shop began business on january 1, 2015. the corporate charter authorized issuance of 10,000 shares of $2 par value common stock and 4,000 shares of $8 par value, 6% cumulative preferred stock. abilene issued 2,400 shares of common stock for cash at $20 per share on january 2, 2015. what effect does the entry to record the issuance of stock have on total stockholders' equity? a. increase of $4,800b. decrease of $4,800c. increase of $48,000d. decrease of $48,000

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.