Grace Co. can further process Product B to produce Product C. Product B is currently selling for $19 per pound and costs $15 per pound to produce. Product C would sell for $40 per pound and would require an additional cost of $10 per pound to produce. What is the differential revenue of producing and selling Product C? a. $40 per pound
b. $25 per pound
c. $21 per pound
d. $30 per pound

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.