Which of the Following Statements Is True of the Common

Multiple Choice

Which of the following statements is true of the common stockholders' right to a residual claim on assets?

A) A firm must pay any back taxes, legal expenses, wages owed to workers, and debts owed to creditors before the owners get anything.
B) If a corporation issues new stock, existing stockholders can purchase new shares in proportion to their ownership before the stock is offered to the other investors.
C) If a firm skips a stockholder's dividend in one period, the amount it must pay the next period is equal to the dividend for that period plus the amount of the dividend it skipped in the previous period.
D) A firm has a legal obligation to pay interest on bonds-and to pay the bondholder the par value of the bond when it matures.