10. Which one of the following statements is correct? A) Positive NPV projects will automatically benefit both bondholders and shareholders. B) There may be conflicts between the interests of bondholders and shareholders. C) Mergers typically benefit shareholders but not debtholders. D) Debtholders prefer negative NPV projects while shareholders prefer positive NPV projects. E) Mergers rarely affect bondholders. 11. Which one of these statements is true? A) Shareholders of the target firm must vote to approve an acquisition by stock. B) The merger of two direct competitors is usually considered to be a conglomerate merger because the consolidated firm will have more market share. C) A merger is the only way for two or more firms to cooperate in pursuit of a joint goal. D) Acquisitions are sometimes involuntary or even hostile. E) In an acquisition of assets, the bidding firm deals directly with the target firm's shareholders