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Shareholders generally prefer that a distressed firm: Select one: O a. Not declare bankruptcy because they are generally required to convert their shares into debt securities. O b. Declare Chapter 11 bankruptcy because they have first priority over the firms assets. O c. Not declare bankruptcy since the common shares are often rendered worthless. O d. Declare Chapter 11 bankruptcy because the common stock generally recoups its value. e. Declare Chapter 7 bankruptcy because that option usually minimizes shareholder loss.
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CORRECT ANSWER :Not declare bankruptcy since the common shares are often rendered worthless.

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