If a company has both preferred and common shares outstanding,the preferred shareholders have the first claim to shareholders' equity.

Name: If a company has both preferred and common shares outstanding,the preferred shareholders have the first claim to shareholders' equity.
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Preferred shareholders have a priority claim to dividends and assets in the event of liquidation, giving them a higher claim to shareholders' equity compared to common shareholders.

If a Company Has Both Preferred and Common Shares Outstanding,the