contestada

In general, shareholders prefer _________ than bondholders do. (Hint: Think about the FedEx example in the online discussion.) a. safer projects b. riskier projects c. more government regulation d. higher CEO pay lower CEO pay

Respuesta :

Adematae

Answer:

B. Riskier Projects

Explanation:

Bondholders are the creditors of the company , so they are always very concerned about the safety of the money borrowed to firms hence may put contracts in place a times to stop management from embarking on a very risky project while shareholders are owners of stock in the company, they tend to support riskier project with very high turnover because that indirectly increases what comes to them.

Parrain

Shareholders and bondholders are different in that when it comes to projects, they prefer b. riskier projects than bondholders.

View of Risk by shareholders and bondholders

  • Shareholders prefer more risk as it would increase the chances of them earning returns in profit.
  • Bondholders prefer less risk so that their payments are safe.

In conclusion, option b is correct because shareholders prefer to engage in riskier projects with high payoffs so they can make more dividends and gains.

Find out more on shareholder v. bondholder opinions at https://brainly.com/question/1218726.