Which One of the Following Statements Is Correct

Multiple Choice

Which one of the following statements is correct?

A) Mergers benefit shareholders but not creditors.
B) Positive NPV projects will automatically benefit both creditors and shareholders.
C) There may be conflicts between the interests of bondholders and shareholders.
D) Creditors prefer negative NPV projects while shareholders prefer positive NPV projects.
E) Mergers rarely affect bondholders.