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Which of the Following Is a Difference Between Common Stock

Question 52

Multiple Choice

Which of the following is a difference between common stock and bonds?


A) Bondholders have a voice in management; common stockholders do not.
B) Bondholders have a senior claim on assets and income relative to stockholders.
C) Stocks have a stated maturity but bonds do not.
D) Dividend paid to stockholders is tax-deductible but interest paid to bondholders are not.

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