The dividend to general unsecured creditors is not a return of equity to shareholders, but the ratio of the net proceeds available to unsecured creditors without priority divided by the total claims of unsecured creditors without priority.

Question

The dividend to general unsecured creditors is not a return of equity to shareholders, but the ratio of the net proceeds available to unsecured creditors without priority divided by the total claims of unsecured creditors without priority.​

Quizplus · Accepted Answer

The statement accurately describes the calculation of the dividend to general unsecured creditors. It does not involve the return of equity to shareholders.

The Dividend to General Unsecured Creditors Is Not a Return