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Because Equityholders Are the Last to Receive Any Distribution of Assets

Question 1

Multiple Choice

Because equityholders are the last to receive any distribution of assets as a result of bankruptcy proceedings, they expect ________.


A) fixed dividend payments
B) greater returns from their investment in the firm's stock
C) all profits to be paid out in dividends
D) warrants to be attached to the stock issue

Correct Answer:

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