In case of bankruptcy, who will typically receive the firm\'s liquidated assets
ID: 2709366 • Letter: I
Question
In case of bankruptcy, who will typically receive the firm's liquidated assets in which order?
Senior Bondholders, Junior Bondholders, Stockholders
Junior Bondholders, Stockholders, Senior Bondholders
Stockholders, Senior Bondholders, Junior Bondholders
Stockholders, Junior Bondholders, Senior Bondholders
a.Senior Bondholders, Junior Bondholders, Stockholders
b.Junior Bondholders, Stockholders, Senior Bondholders
c.Stockholders, Senior Bondholders, Junior Bondholders
d.Stockholders, Junior Bondholders, Senior Bondholders
Explanation / Answer
Answer:
A) Senior Bondholders, Junior Bondholders, Stockholders
In liqidation the stockholder's have the final claim on the asset of the company. The bond holders have thier claim before stockholder in the order of thier seniority.
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