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Willa Holds 1,000 Preferred Shares of Fun Games Inc

Question 21

Multiple Choice

Willa holds 1,000 preferred shares of Fun Games Inc. Hence, she would have a right to:


A) express her ownership interest in the corporation by voting.
B) receive interest over her investment prior to its distribution to the bondholders.
C) receive the assets of the company on liquidation prior to the common stockholders.
D) ratable participation in the earnings of the corporation.
E) ratable participation in the distribution of net assets of Fun Games Inc. on liquidation.

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