As residual claimants, which of these investors claim any cash flows to the firm that remain after the firm pays all other claims?

Name: As residual claimants, which of these investors claim any cash flows to the firm that remain after the firm pays all other claims?
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Question

Quizplus · Accepted Answer

Common stockholders are considered residual claimants because they have the right to claim any cash flows that remain after the firm has paid all its other obligations, including creditors, bondholders, and preferred stockholders.

As Residual Claimants, Which of These Investors Claim Any Cash