Which of the following is true about stocks vs. bonds?

1. Cash flows to stockholders must be paid before cash flows to bondholders.
2. In general, bonds are more risky than stocks.
3. Stocks are easier to value than bonds.
4. The cash flows to bondholders are promised, whereas the cash flows to stockholders are not.

The primary objective of the corporate financial manager is to:

1. Maximize stock price.
2. Avoid risk.
3. Minimize risks.
4. Maximize profits.