A cash-equivalent price means Group of answer choices it is assumed that the buyer did not have to get a mortgage. the price includes the seller paying no more than 5 points (5%). the price reflects what a seller would accept as if he or she received cash at the closing. the rights in realty can only be fee simple.

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.