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Which of the Following Is True of Equity and Debt

Question 7

Multiple Choice

Which of the following is true of equity and debt?


A) Equity has a secondary market,whereas debt does not have a secondary marker.
B) Equity holders cannot elect the board of directors of a corporation,whereas debt holders can elect the board of directors.
C) Equity holders' claims must be paid in full before the claims of debt holders can be paid.
D) Equity holders receive cash in the form of dividends,whereas debt holders receive interest payments.

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