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If You Are a Preferred Shareholder at CDE Corporation and CDE

Question 114

Multiple Choice

If you are a preferred shareholder at CDE Corporation and CDE goes out of business, which of the following best describes your claim on the firm's assets?


A) It comes before the claim of common shareholders.
B) It is limited to any preferred dividends the company has not paid.
C) It takes preference over claims of any creditors.
D) It is guaranteed to be paid in full.

Correct Answer:

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