If a firm is liquidated, preferred shareholders rank Blank______. Multiple choice question. behind all creditors but ahead of common shareholders behind common shareholders but ahead of all creditors behind both creditors and common shareholders ahead of both creditors and common shareholders
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If a firm is liquidated, preferred shareholders rank Blank______.
behind all creditors but ahead of common shareholders
behind common shareholders but ahead of all creditors
behind both creditors and common shareholders
ahead of both creditors and common shareholders
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- Common stockholders; a. have the first claim on the income and assets of the firm b. contribute towards a firm's debt capital c. do not have voting rights in general d. No option is correctPreference shareholders have O a Preferential right as to dividend only Ob. Preferential right in the management Oc. Preferential right as to repayment of capital at the time of liquidation of the company Od. Preferential right as to dividend and repayment of capital at the time of liquidation of the CompanyDetermine whether it is common stock, preferred stock, or bonds that has the feature best related to the following considerations. a. Ownership and control of the firm b. Obligation to provide return c. Claims to assets in bankruptcy d. High cost of distribution e. Highest return f. Highest risk g. Tax-deductible payment h. Payment partially tax-exemptto corporate recipient
- Match the terms to the definition: Receive stipulated dividends, get paid first when there are profits, no say in corporate decisions. Are creditors not owners, get paid first regardless of profit or not, if company goes bankrupt they get paid first Last to get paid, able to vote in matters concerning the corporation A. Common Stock B. Preferred StockC. BondsWhich one of the following statements about ordinary equity is correct? a. Shareholders have a residual claim to the firm's assets. b. Shareholders are repaid an ordinary share's value on the share's maturity date. c. Shareholders' return is always positive. d. Equity that is listed on the ASX must pay a dividend.Which of the following is a characteristic of common stock?a. The right to the residual income after creditors have been paidb. Limited liability in the case of the corporation going bankruptc. Voting rights to elect the board of directorsd. The right to maintain a proportionate share of ownership in the firm (when new shares are issued, stockholders have the first right of refusal)e. All of the above
- Which of the following is not a right of owners of common shares? Residual assets in liquidation Vote on proposed mergers Vote for company directors Obtain past dividends not paidUnless stated otherwise in the prospectus, which of the following accrue to holders of common stock? Check All That Apply The right to vote on members for the Board of Directors. The right to share proportionally in dividends paid. An ownership stake in the company. The right to receive any back dividends that were missed if the company suspends its dividend and then decides to restart paying dividends. First priority on assets following a liquidation and distribution of the firm's assets.A major difference between common and preferred stock Seleccione una: a. is that common stockholder have voting rights and preferred stockholders do not. b. is In the case of liquidation after a bankruptcy, common stockholder will be paid before preferred stockholders. c. is that preferred stockholder have voting rights and common stockholders do not. O d. is that common stock have a fixed dividend and preferred stock does not pay a dividend.
- Statemernt 1 : In the case of corporate liquidation, stockholders must be paid first followed by the creditos Statement 2: Unsecured creditors with priority will not always receive 100% of their claim. O Both statements are incorrect O Only Statementlis correct Only Statement Il is correct Both staterments are correctWhich feature is not applicable to common stock ownership?a. Right to receive dividends before preferred stockshareholders.b. Right to vote on appointment of external auditor.c. Right to receive residual assets of the company shouldit cease operations.d. All of the above are applicable to common stockownership.Which of the following parties cannot be granted shares or share options by the entity? A. Chief accountant B. Non-executive director C. None of the foregoing D. Supplier of goods and services