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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Definitions:

Hilus

A part of an organ where blood vessels, nerves, and other structures enter or exit.

Oropharynx

A part of the pharynx situated between the soft palate and the epiglottis, involved in swallowing.

Nasopharynx

The upper part of the throat located behind the nose, which forms part of the respiratory system.

Laryngopharynx

The part of the pharynx that lies below the epiglottis and above the esophagus, involved in both respiration and digestion.