Which of the following statements regarding the rights of common stockholders is true?
A) A firm's common stockholders collectively, albeit indirectly, own all the firm's assets.
B) A firm's common stockholders, along with the preferred shareholders (if any) , elect the members of the board of directors.
C) A firm's common stockholders enjoy unlimited upside potential with limited liability.
D) A firm's common stockholders vote to establish the dividend payout ratio for the firm.
Correct Answer:
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