William buys 20 shares of zync corporation at $18.5 per share. zync pays dividend at the end of each year on the basis of profits made during the year. in its 25 years history, zync has paid dividends every year without fail. william's initial investment and the receipt of dividend at the end of every year is referred to as and respectively.

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.