Question

Hardy Lumber has a capital structure that includes bonds, preferred stock, and common stock. Which one of the following right
Multiple Choice Right to share in company profits prior to other shareholders. Right to elect the corporate directors. Right
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Answer #1

ONLY COMMON SHAREHOLDERS HAVE RIGHT TO VOTE AND HAVE A RIGHT TO ELECT DIRECTORS.

COMMON SHAREHOLDERS ARE PAID AFTER PAYING EVERY CREDIT IN CASE OF LIQUIDATION.

SO PREFERRED HOLDERS ARE PAID EARLIER THAN COMMON SHAREHOLDERS.

SO CORRECT ANSWER : Right to share in company profits prior to other shareholders [Thumbs up please]

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