A j Henry company, maker of high quality flashlights, has experienced steady growth over the last 6years. However, Increased competition has led mr. Henry, the president, to believe that an aggressive campaign is needed next year to maintain the company’s present growth. The company’s accountant has presented Mr. henry with the following data for the current year,2021,for use in preparing next year’s advertising campaign what is the projected operating income for 2021

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.