The claims of the equity holders on the assets of the firm have priority over those of:

Name: The claims of the equity holders on the assets of the firm have priority over those of:
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Question

Quizplus · Accepted Answer

The claims of the equity holders on the assets of a firm are subordinate to all types of debt holders, including secured, unsecured, and preferred shareholders. This means equity holders are the last to be paid in the event of liquidation, making option D correct.

The Claims of the Equity Holders on the Assets of the Firm