1. What are some differences in the income received by common stockholders and the income received by bondholders?

Select all correct answers.

A. Dividends are not based on the par value of stock, but interest is generally based on a bond's par value.

B. Dividends are not fixed, but interest is generally a fixed dollar amount.

C. Common stock may pay dividends while bonds may pay interest in the form of coupons.

D. Both dividends and interest income are guaranteed as long as the corporation is generating sufficient income.