Sheffield corporation’s december 31, 2018 balance sheet showed the following: 9% preferred stock, $20 par value, cumulative, 9000 shares authorized; 6500 shares issued $ 13 common stock, $10 par value, 11 shares authorized; 1075000 shares issued, 106 shares outstanding 1075 paid-in capital in excess of par―preferred stock 29000 paid-in capital in excess of par―common stock 1361 retained earnings 38 treasury stock (15000 shares) 327000 sheffield declared and paid a $57100 cash dividend on december 15, 2018. if the company’s dividends in arrears prior to that date were $10100, sheffield’s common stockholders

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.