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?

Question

Quizplus · Accepted Answer

In the event of liquidation, common shareholders are paid last, after all debts (including interest), taxes, and preferred dividends have been settled.

Consider the Following Four Types of Payments That Could Be