Consider the following four types of payments that could be made by a normal operating firm: interest,common dividends,income taxes,and preferred dividends.Compared to the other payments mentioned,where would you rank common dividend payments in terms of the order of payment if the firm is liquidating?

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Common dividend payments would be ranked fourth in terms of order of payment if the firm is liquidating, as they are paid after all other payments, including creditors, employees, income taxes, and preferred dividends.

Consider the Following Four Types of Payments That Could Be