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Because Equity Holders Are the Last to Receive Any Distribution

Question 72

Multiple Choice

Because equity holders are the last to receive any distribution of assets as a result of bankruptcy proceedings, common stockholders expect


A) fixed dividend payments.
B) greater compensation in the form of dividends and/or rising stock prices.
C) all profits to be paid out in dividends.
D) warrants to be attached to the stock issue as a sweetener.

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