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The Fact That Common Stockholders Are Residual Claimants Means

Question 9

Multiple Choice

The fact that common stockholders are residual claimants means


A) The stockholders have a claim against the revenue that remains after everyone else is paid
B) The stockholders receive their dividends before any other residuals are paid
C) The stockholders are paid any past due dividends before other claims are paid
D) The stockholders are paid before the bondholders but after any taxes are paid

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