Creditors Are Interested in a Corporation's Stockholders' Equity Because

question 15

Multiple Choice

Creditors are interested in a corporation's stockholders' equity because

• A)stockholders' equity will be used to pay the creditors' claims
• B)they get to vote in corporate elections when their claims are past due
• C)they are entitled to dividends before any are paid to common stockholders
• D)stockholders' equity represents a margin of safety for meeting their claims on assets

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