Skyjet Airlines Has $200 Million in Existing Bond Debt, $50

Skyjet Airlines has $200 million in existing bond debt, $50 million in preferred stock, and total common stockholders' equity of $400 million. If Skyjet were to file for bankruptcy and liquidate its total assets for $500 million, Skyjet would have to pay

A) $200 million to its debt holders, followed by $50 million to its preferred stockholders, and lastly, $250 million to its common stockholders.
B) $400 million to its common stockholders, followed by $100 million to its debt holders.
C) $50 million to its preferred stockholders, $400 million to its common stockholders, and $50 million to its debt holders.
D) $200 million to its debt holders, followed by $300 million to its common stockholders.