If a firm goes bankrupt and liquidates its assets, both stockholders and bondholders are responsible for any remaining debt.

Name: If a firm goes bankrupt and liquidates its assets, both stockholders and bondholders are responsible for any remaining debt.
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Stockholders are only responsible for any remaining debt after bondholders have been paid back in full. Bondholders have a higher priority in the repayment of debt because their investment is considered less risky than stocks.

If a Firm Goes Bankrupt and Liquidates Its Assets, Both