Answered

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In the event of bankruptcy, stockholders have a claim to assets of the corporation before bondholders.

a) TRUE
b) FALSE

Sagot :

GinnyAnswer

Final answer:

Stockholders do not have a claim to assets of the corporation before bondholders in the event of bankruptcy.


Explanation:

FALSE


In the event of bankruptcy, stockholders are considered residual claimants and have a claim to the assets of the corporation only after other creditors, including bondholders, have been paid.


This is because bondholders have a higher priority in the capital structure of a company, granting them preference over stockholders in the event of bankruptcy.


Learn more about Corporate Bankruptcy and Capital Structure here:

https://brainly.com/question/31467472


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