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The Fact That Common Stockholders Are Residual Claimants Means the Stockholders

Question 5

Multiple Choice

The fact that common stockholders are residual claimants means the stockholders:


A) have a claim against the revenue that remains after everyone else is paid.
B) receive their dividends before any other residuals are paid.
C) are paid any past due dividends before other claims are paid.
D) are paid before the bondholders but after any taxes are paid.

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