Which of the following financing alternatives has the highest preference of payment in a case where the company liquidates its assets?

Question

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Bonds have the highest preference of payment in a case where the company liquidates its assets. Bondholders are considered creditors and therefore have a priority claim on the company's assets over common and preferred stockholders. Common and preferred stockholders have residual claims, meaning they only receive payment after all bondholders and other creditors have been paid in full.

Which of the Following Financing Alternatives Has the Highest Preference