Which of the following properly represents the hierarchy of creditor and stockholder claims?

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Generally, creditors have a higher priority than stockholders in terms of claims. Within the category of creditors, senior secured debt holders have the highest priority, followed by subordinated debentures. Preferred stockholders have preference over common stockholders, but they are still below creditors. Debentures represent a type of unsecured debt, which is below both senior and subordinated debt holders in terms of priority. State taxes are generally paid before any other claims but are not related to the creditor/stockholder hierarchy. Wages due to workers are typically given priority over unsecured creditor claims but are still below all types of debt holders and preferred stockholders.

Which of the Following Properly Represents the Hierarchy of Creditor